Long EURJPY (-100)
It has been a very slow start in August with only two trades in the first week and they both closed for a loss. It is always easier in hindsight but this trade had some clear warning signs, I even noted it on a message to followers that yen pairs are unlikely to recover until USDJPY gets close to the target of its pullback at 108. I took this trade when i thought a trendline on the USDJPY was holding but I really should have waited for the 108 or at least close to it.
They performance of the Yen is closely related to risk assets, so when things look good the Yen goes down and when things look bad the Yen goes up, USDJPY is the final one to turn it often goes sideways for moderate risk but with it falling risk is definitely off. The North Korea stand off is the most obvious catalyst but seasoned traders will recognise that wars seem to have limited effect on the value of assets, often they go up as government spending increases. All of the Yen pairs remain bullish and I am interested in buying them but I will await a better opportunity.
It is interesting to note that the Indices are at an important juncture, they are definitely bullish with higher highs being registered but the run from February lows this year seems mature. It has unfolded in 3 waves and many of the indices have reached the measured target for this move suggesting a more extended pullback may be at hand. I am not interested in selling but will buy the pullbacks when they are complete.
RetiredearlyFX is a trading name of the investment company Bagehotsway.
We are not a regulated company but we only sell regulated products.
We are not authorised to give investment advice.
We believe all figures quoted to be accurate but past performance in no way guarantees future performance
Trading FX is high risk and not suitable for everyone.