Michael Bridgman

The USDJPY could not sustain above its Asian highs and although it traded sideways… the bias was to short it.  As the U.S. session approached, a short is taken with an 11 pip stop loss with a target of getting down near the May 5th low.  Our actual Targets 1 and 2 were 105.56 and 105.41 respectively.  We were not thinking it would go much lower than the May 5th low…particularly with the Bank of Japan potentially easing this week.

After the short is taken, we moved our stop loss to plus one pip in advance of the U.S. open.  Price picked up downside momentum as the U.S. session got underway and moved down to its Asian low… where it tested and retested the level before moving lower.  As price bottomed we tightened our profit stop further and were taken out on the bounce.

Although traders are very interested in hearing what Janet Yellen will say today and how optimistic she will sound… to determine if 2 rate hikes are still on the table for 2016, it will also be interesting to hear her comments on the last employment number.  The bigger concern for the market currently is the “Brexit Bremain” polls as the countdown continues to June 23rd.  Continue to be very cautious trading the EUR and GBP.

Good luck with your trading!

 

After starting the UK session selling off, the GBP then bounced between yesterday’s low and its Asian low for 3 hours before decidedly closing lower. An entry short is taken and the pair moved lower in advance of the U.S. Open.  As new sessions begin and volatility tends to pick up with stops being run, we moved the stop loss to plus 1 pip – removing the any risk from the trade.

As the U.S. part of the session gets going, price drops through our Targets 1 & 2 in one candle and we close the trade on the first sign of a pullback.

Be very careful trading the GBP and EUR as June 23rd approaches.

WTI having reached $51.50 earlier in the week closed down bearishly below $49 to close the week.

Good luck with your trading and enjoy your weekend!

 

WTI closed above the important $50.00 a barrel for the first time this year and also the first time since July 2015.  With a bias to trading the Canadian dollar and the CADJPY cross long, we found a setup as both WTI and Brent began to climb in the early part of the UK session.

With an initial stop loss of 17 pips and 112 pips to our Target 2 (not shown on the chart – T1 was 85.07 and T2 was 85.23) we entered long.  As price began to rise, we moved the stop loss to a plus 2 pips while price tested its Asian high.  As it broke through and continued to yesterday’s high, we tightened our profit stop further.  Price got a little heavy above yesterday’s high as evidenced by the 2 long wicks as it double topped.  As the U.S. session got under way with the pending crude inventory levels…price began to retrace and we were closed out.

Good luck with your trading!

Back tomorrow if we find a trade.

 

The JPY was unable to sustain above its Asian high and set up for a short.  The pair looks like it could test the 106.50 area from last Friday.

With a 20 pip stop loss for a potential 109 pips to our Target 2, we entered short with our first goal of getting through yesterday’s high.  Price moved lower in the U.S. session and as it headed lower, we protected our profits by moving our stop loss…now profit stop lower.  Not having any risk in a trade is a very comfortable feeling.  Price continued downward as we focused on getting through the Asian low.  As lower wicks formed on the candles…indicating buyers entering, we tightened up our profit stop and we were taken out of the market.

Be aware of extreme volatility in the EUR and GBP as we approach Britain’s referendum on June 23rd.  Very large institutional orders were creating some hectic trading conditions last session.  Read the fine print from your broker as you may experience undesirable fills and stops during periods of extreme volatility.

Good luck with your trading!

Stronger USD today going into a long weekend for the US and UK.  Will Janet Yellen give the market reason to believe that a June interest hike is on the table is the big question.

Reacting to the US news today the JPY initially went down.  After it popped right back up we went long with a stop loss just below its session low.  As price continued higher, we moved the risk out of the trade and set the profit stop to plus 2 pips.  As price moved higher we locked in more profit especially as we approached the area that had been a sell zone earlier in the day.  With the markets being leery of Yellen’s speech, coupled with holding over the weekend, we chose to exit as price was rejected at the sell zone and beneath the important 110.00 Big Figure.

June rate hike or not – next week will be interesting.  Will WTI finally close above $50?

Enjoy your weekend especially if it’s a long one for you!