The yen ran into some selling yesterday after the Bank of Japan’s comments. My bias remains to short the euro and today I waited until the U.S. session got underway to short the EURJPY expecting it to recover from yesterday’s move up. The setup required a 14 pip stop loss for a potential 52 pips to our daily target at 130.23. Price made it’s way down into the London Close where we exited the trade 10 pips short of our target.
Thursday will be very important for the GBPUSD as the market has priced in a rate increase by the B.O.E. and if Governor Carney doesn’t deliver the pair may move lower to test the 1.3000 figure.
Keep in mind during August, volumes are much lower due to holidays, but that doesn’t negate lots of trading opportunities.
Good luck with your trading!
