300 pips profit on GBPJPY Long?
I would like to start talking about Yen first.
It has been a few days since we have seen both YEN and USD rising in the same direction which is a strange thing to watch. I think YEN now is trying to find its way and for the following reasons I believe YEN will depreciates.
1) This is weighted average YEN versus other 7 major currencies. It has been struggling to break the resistance and so far it has not been successful. Would you go long on such a trade? Probably not….
If that is not a Long trade for you then GBPJPY Long is your trade. Think about this.
3) This one is self-explanatory. It is heading lower and it is Japanese 10 Y Bonds. Same correlation spotted.
4) Japanese Yields and opposite direction expected. Would you go short here? Probably not as Yields rising. Rising Yields means falling YEN.
NOW LET’S TALK ABOUT POUND
6) The first chart I would like to show for pound is Weighted average Pound. See how it bounced at the lower parallel of the channel. See my GBPNZD where I presented this expectation last week.
8) UK Gilts are down too. Stronger Pound expected out of this.
9) Same with British Bonds. They are down which means we should be seeing stronger GBP.
10) I kept my worst chart for the end. LoL. FTSE 100 is up which I really do not like to see. Stronger FTSE100 means cheaper pound. Anyway not always everything adds up. Right? Let’s hope these resistances push the price lower.
Thank for following me,