Michael Bridgman

The JPY is trading in a range of approximately 118.00 – 121.00 with a subdued daily range of late.  As month end approaches, we expect to see more activity with the BOJ announcement.  In the meantime, the JPY continues to move in near 50 pip increments between the figures… 119.50 to 120.00 etc.

At the UK open it soared higher then pulled back into the Asian range where it went sideways.  When this range broke, we entered long with a 10 pip stop loss for a potential 55 pips to our Target 2.  Knowing that this pair would slow around the 120.00 figure we tightened our profit stop in advance. Price was unable to close above 119.95 and we were taken out at our profit stop.

Last week I was unable to find a trade that met our Reward to Risk requirements.  I would rather sit on my hands for a week than force a trade and get stopped out for a loss.  Discipline is key to trading success.

I remain a USD bull, but not with the same conviction that I had during the summer.  The bond market at this stage is lacking enthusiasm for a rate hike any time soon…but this can change with  Janet Yellen’s next speech.

Good luck with your trading!

Back tomorrow if we find a trade.

The GBP made a strong close on Wednesday which was very significant to postition traders.  Yesterday the level held well and today it was retested.

As a sell zone became evident in today’s session  – we awaited for a strong reversal setup.  A 20 pip stop loss for a potential 87 pips to our Target 2 was very attractive.  We went short and although the trade went against us in the first 15 minutes, price was unable to close above yesterday’s high.  Price then moved down and we awaited to see how it would react at the Asian low.  The level gave way, got retested and price moved down one more time.

As price continued down, it appeared to have found a bottom and bounced strongly upward.  We closed the trade choosing not to give back too many pips.

Good luck with your trading!  Enjoy your weekend!

Back Tuesday if we find a trade.

A light news day today with the EUR finding sellers near the top of its recent range – around the 1.1300 figure.

After the second break of the Asian low and consistent with our bias, we look for a short setup and find one allowing a 15 pip stop loss for a potential 75 pips to our Target 2.

Price moved down before buyers entered below the session low – not letting price reach 1.1200.   We exit as price bounces up toward the previous candle’s low to preserve our gains.  Wicky candles are very revealing of pending price reversals – especially at important price levels.  Think of them as a yellow flag being waived on a race course.

 

Good luck with your trading!

UK and US news tomorrow.

Back then if we find a trade.

Since the soft NFP number last Friday, the USD has been under pressure.

Today with an overall USD weakness continuing and WTI moving up, a short is taken on the CAD pair.  With a 17 pip stop loss just above the double-top, we go short for a potential 84 pips to our Target 2.

Price drops as WTI moves up strongly.  As price attempts to break beneath yesterday’s low and the Asian session low, buyers emerge and we close the trade as price jumps back up to the previous candle’s close.

Good luck with your trading!

Back tomorrow if we find a trade.

Despite the Nikkei moving up, the JPY set up nicely for a short in early London trading.  The daily chart indicates how the pair has been in a fairly tight range all of September.  With NFP tomorrow we would not expect the range to break today.  The pair set up nicely allowing for a 15 pip stop loss for a potential 84 pips to our Target 2.

Price took awhile but it eventually descended to its Asian session lows.  We protect ourselves in advance of the U.S. Unemployment Claims and the volatility from the news takes us out at our profit stop.

Good luck with your trading!  Be careful trading with NFP due tomorrow.

Back next week when we find a trade.

Today the EUR ran into sellers above 1.1230 and after 2 false breakouts to the downside already – we go short.  The “wash and rinse” is usually a 2 cycle event but today it was 3…as price came back up one more time above the Asian low. Our stop loss of 15 pips for a potential 69 to our Target 2, was not threatened.  We protected ourselves in advance of the U.S. Open moving our profit stop to plus 5 pips.

Price descends to yesterday’s close where it stalls and retests before dropping to our Target 1.  As price retests this level, we exit.

My preference continues to be to trade this pair with USD strength and fade rallies.  Be very careful of taking any trades when the market is not making sense. and the correlations are contradictory.  Yesterday was a good example of day to stay out of the market.

Good luck with your trading!

Back tomorrow if we find a trade.