Giuseppe Basile, CSTA/IFTA
FibStalker Trading
Summary: During the session GBP/JPY too has confirmed the move lower. The first stop for USD/JPY and GBP/JPY are now, respectively, 118.80 and 169.50. Both markets have lower targets too, but we will nee to wait and see how Algos will behave when the levels indicated are tested.
We mentioned the relation of USD/JPY with the S&P500 and risk-off. The most worrisome aspect is that relation: a move lower of the USD/JPY could "bring with it" the stock indexes, decreeing the end of the last cycle started in 2009. After 6 years the perception is that this cycle will come to an end. Unfortunately the potential drop in the markets lines up with the end of a 40 year cycle.
We talked about the EUR/USD and we showed the different in size between the lateral move of the last 2 months in the "corridor" between 1.10 and 1.08, and the larger move seen in the period April-November 2016. I will keep staying away from this market until it resolves out of this sideways action, one way or the other.
During the room an opportunity on GBP/USD has materialized and price is moving accordingly and will offer a risk-free trade at around 1.4383. This market has a multi-week target at 1.3950 area, some 450 pips below.
See you tomorrow 2/3 at 8.00PM EST in the FXS Forex Tokyo Open Room ('The T.O. room').
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Come daily to Live Video and chat with experts and traders.
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We mentioned the relation of USD/JPY with the S&P500 and risk-off. The most worrisome aspect is that relation: a move lower of the USD/JPY could "bring with it" the stock indexes, decreeing the end of the last cycle started in 2009. After 6 years the perception is that this cycle will come to an end. Unfortunately the potential drop in the markets lines up with the end of a 40 year cycle.
We talked about the EUR/USD and we showed the different in size between the lateral move of the last 2 months in the "corridor" between 1.10 and 1.08, and the larger move seen in the period April-November 2016. I will keep staying away from this market until it resolves out of this sideways action, one way or the other.
During the room an opportunity on GBP/USD has materialized and price is moving accordingly and will offer a risk-free trade at around 1.4383. This market has a multi-week target at 1.3950 area, some 450 pips below.
See you tomorrow 2/3 at 8.00PM EST in the FXS Forex Tokyo Open Room ('The T.O. room').
-----
Come daily to Live Video and chat with experts and traders.
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