Washington midnight could decide upon a few things here

The fact USDJPY isn’t following the other USD higher may find its explanation in the yield curve flattening further. 2-10s US are sub 30 bps.

Have a look at the dailies EURJPY then. 129.60s capped again today and it’s a crossroad of 3 decent trend lines.And it’s held up today by the top of a thin Ichimoku at 129.10.

One and all should have to do with tomorrow’s tariffs hitting the calendar and being such an important level. If they’re coming into effect and China retaliates as promised, we should cap this cross. If in turn we’d have a late reversal of the situation, risk could get a serous lift in my opinion.

I jobbed a short coming back late to the party this afternoon from 129.35 down to 15, where I cut half. That puts me short at 129.55 on the rest. IF Washington says “GO”, I’ll add a bit to it for a return to the bottom of the cloud at 128.45 initially, deeper if we get a break. It’s a thin cloud, the break should see a decent run if it happens. In turn if the word is “NO” , then I will reverse and go long expecting EURJPY to put in some performance over the next sessions. 132 could be seen rather quickly .

Stay safe and happy hunting

EURJPY D 05.07.2018

Latest posts by K-man (see all)

Pin It on Pinterest