Michael Bridgman

During the Asian session the USDJPY attempted to climb higher but ran into sellers before it could reach 110.00.  As the U.K. session got underway price moved up from its Asian lows before setting up for a reversal – where a short was taken risking 16 pips for a potential 48 pips to our daily target.

Although the pair remained range bound for the first few hours, it then made a third lower high and finally began to drop an hour before the U.S. open.  We locked in profit as it dropped and we were taken out of the trade as buyers entered at the 109.00 figure.

If the USD continues to be soft and the market sentiment remains as “risk off” then the USDJPY could move down further with 108.50/108.60 area attracting some buyers or possibly a move down to test the 108.00 figure.  If 108.00 gives way then the 107.50 area will be in sight.

This week is light on economic news and volume in advance of the Jackson Hole Symposium starting tomorrow as well as summer winding down.

Good luck with your trading.

On Thursday the USDJPY moved down during the first half of the Asian session then began to make a wave higher in the first half of U.K. session. Price tried to climb above its Asian highs but sellers entered  and as the U.S. session got underway forming a reversal setup and we entered short risking 13 pips for a potential 71 pips to our daily target at 109.44.

Price moved vertically down but a long lower wick formed on the candle as  price tried to close beneath its Asian lows .  As this is indicative of a potential reversal as buyers entered, we tightened our profit stop and price moved up taking us out of our trade.

On Friday the USDJPY did not retest the 110.00 level and USD weakness continued.  Price ranged sideways throughout the first half of the U.K. session before a reversal setup… just as the U.S. session got underway.  A short was taken risking 15 pips (with a stop just above the its Asian session lows) for a potential 37 pips to our daily target at 108.66.  With a very light news day and continued USD weakness, price moved down to our target and closed just beneath it.  We protected our trade by immediately placing our profit stop at our target price of 108.66 and the subsequent candle took us out.

It will interesting to see if the 110.00 level is retested next week.

Good luck with your trading and enjoy your weekend!

 

The GBP popped higher briefly with the positive economic news for the U.K. but could not stay above 1.2900 and began to move lower.

A short was taken requiring an 18 pip stop loss for a potential 64 pips to our Daily target of 1.2821

Price moved down to test its Asian high before descending to the 1.2860 level which is a level important to position traders.  If this level gives way, it opens the door for a potential move to the 1.2640 area.  Not wanting to give up a minimum of 20 pips we moved our profit stop down and our trade was closed.

FOMC meeting minutes are pending and we will see how the USD trades subsequently.

Good luck with your trading!

 

 

A very active Asian session for the USDJPY as the geopolitical tensions abate between the U.S. and North Korea – for now.  The USD started the week stronger and this has continued into Tuesday.

Our upside target for the pair was 110.36 for today and it briefly exceeded it during the Asian session, which was followed by a lackluster first half of the U.K. session.  Price popped up higher as the U.S. session got underway and at the first sign of a reversal, we chose to go short with the idea of price moving back down to our daily target high of 110.36.

With a 12 pip stop loss above the session highs and a reversal back to our target for 36 pips we had a nice 3:1 R/R.  Price moved down but did not quite reach our target before the U.K. session ended, which is where we closed the trade.

The geopolitical events that influenced the money flows to the JPY and CHF last week have abated for now, but the unpredictable nature of the North Korean leader has not necessarily changed.  If the USDJPY moves higher, 110.62 area needs to be taken out and then a test of 111.25 and potentially the 112.50 area… will be very telling.  To the downside the 110.00 big figure is very significant.  Attention to price action near 109.35,  108.75,  108.15 areas is prudent.

I was called out of town unexpectedly last week and as a result ended up taking the rest of the week off.

Good luck with your trading!

 

 

 

This was a very simple trade setup that is countertrend and produced a small but quick return.  The thinking behind it was quite simple.  The USDJPY which is trending downward has come to test a very critical level.  Critical levels like to be retested and on the first test – often hold and produce a reversal setup.

The USDJPY at this stage needs to break the 110.00 figure and continue down to reinforce its trend…which is very strong at the moment…looking at the weekly, daily, 240 and 60 minute charts.

As it bounced today at 110.00 and began to move higher after the U.S. ISM Manufacturing PMI release, the U.S. dollar index confirmed a bid tone for a change.

The idea was to go long after the bounce with a 13 pip stop loss and ride price higher until the U.K. close…hopefully to the Asian high or higher.  Price had already fallen vertically and in many cases vertical moves are followed by reversals that tend to be vertical too.

In this case, price moved quickly higher and the trade was exited at the U.K. close for a modest amount of pips.  Countertrend trades tend to be less rewarding.  The market is not unidirectional and taking countertrend trades can be rewarding if done very cautiously – risking very little and keeping your profit stop tight.

Good luck with your trading!

There was not a lot of economic news today to drive the majors, but the continued USD weakness as the month of July comes to an end allowed the EURUSD to make another thrust higher.  The pair has moved very bullishly, taking out its August monthly high from 2015.  It has also closed above a very significant level on the weekly chart.

We entered long early in the U.S. session with a 16 pip stop loss for a potential 81 pips to our daily target at 1.1820.  As price moved up and stalled at the important weekly level, it appeared to be reversing and we closed the trade, just before price jumped another 40 plus pips.

Be cautious around the Manufacturing PMI releases for both Britain and the U.S. on Tuesday.

Good luck with your trading!