Trading Forex and CFDs is risky

YEN Stronger GBPJPY and CADJPY both hit Target

Market Analysis
2016-12-29_12-19-46

GBPJPY, Daily              

The YEN has gained over night on what is being interrupted as a relatively upbeat statement from the Bank of Japan. The “Summary of Opinions” from last week’s BOJ meeting before the official minutes are published suggested a fairly positive meeting and outlook.  They noted that exports had risen, the JPY has fallen, the global economy is looking better and the US economy may “accelerate further under new president”. Local consumption has improved and Japan was at a “critical juncture” to achieve price target.  The YEN rallied across the board and two of my LONG JPY positions hit Target 1 for a net gain of 372 pips.

I wrote last week (December 21) that; The GBPJPY looks vulnerable for a pull back, the strong rise during November and December may have peaked with what appears to be a pivot high and shooting star at 148.46. Monday’s (December 19) strong move down absorbed the five previous day’s energy.  A SHORT position was entered today at 145.50 with Target 1 at 143.00 (the confluence of the 14 DATR, the 200 DMA and the 23.6 Fibonacci retracement level) and Target 2 at the 38.2 Fibonacci level and psychological 140.00.  The MACD and RSI are suggesting further weakness. However, the pair remains north of the 20 DMA at 144.00 which could provide short term resistance to the move lower and the Parabolic SAR is still positive.

2016-12-29_12-23-49

The following day (December 22) I wrote ; The JPY continues to look interesting and I have entered a further (and final) JPY LONG position. This time it is a short CADJPY. Entry was at 87.56 with a Target 1 at 86.34 (20 DMA support area, 14 DATR and above the 23.6 Fibonacci level). This position is against the longer Weekly and Monthly trend which have both turned positive. However, the daily chart shows bearish MACD, RSI and Parabolic SARS. Target 2 at 84.84 is above the 38.2 Fibonacci retracement due to the longer term trend change.

 

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Stuart Cowell

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.