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Currency market: EUR/USD, GBP/JPY, USD/JPY

EUR/USD target factored yesterday afternoon upon the change of interest rates is 1.0729. Levels to today's 7 hour trade is located at 1.0715, 1.0728, 1.0735, 1.0742. The upside dsicrepancy exists for 13 pips at 1.0729 Vs 1.0742. The only question to the 13 pip disparity is the exact short entry point to maximize profit from every traded pip.

The bottomside EUR/USD is uniform at 1.0636 Vs 1.0634. Longs are well established to entry. Long and short entries assumes movements exist today in order to enter trades.

No movements then EUR/USD could trade easily 1.0725 to 1.0657 or 1.0713 to 1.0651. This arrangement happens many times to currencies and other financial instrument day trades such as SPX and WTI.

The EUR/USD trade for today remains long and short. Assume EUR/USD short at 1.0725 or 1.0729 but EUR/USD trades to 1.0742. Nothing happened except the market offers an extra 13 or 17 pips if one extra lot is added.

If the trade runs to 1.0657 then 68 pips are banked or 74 pips to 1.0651 or 89 pips to 1.0636.

The smart approach to longs is target 1.0673 or 1.0679. From 1.0636 = 37 pips or 43 pips to 1.0679. From 1.0651 then 22 pips or 28 pips, from 1.0657 then 16 pips or 22 pips.

The overall smart trade is yesterday's to target 1.0729 and around 1.0636 because only requirement is set entries and targets then walk away. Most trade days, entries and targets are easily met. The currency or market price doesn't have other choices except to trade to target.

Trade to target is not a requirement to all traders especially when 93 pips are involved or overall roughly 123 ish pips. To not trade to targets then Trades generate easily 50 and 60 pips daily for each of 9 currency pairs. Not a bad daily haul for doing nothing.

Targets are my personal methodologies/ research and running for nearly 12 years. To understand targets and locations is to fully know and comprehend the market price so never to lose.

Recall the weekly trade posted Sunday: long from 1.0667 and 1.0657 to target 1.0801 then short to target 1.0725. Lows achieved yesterday at 1.0651 and highs so far at 1.0713. From 1.0657, the trade runs 56 pips.

GBP/JPY from long term averages targets 168.05 and 168.83. Previous high was located at 168.35. USD/JPY traded higher from 126 support and allowed JPY cross pairs to trade higher. GBP/JPY led the charge as normal and remainder JPY cross pairs while sickly overbought traded alongside GBP/JPY. GBP/JPY will eventually lead JPY cross pairs lower. CAD/JPY then EUR/JPY are the next best to the overall big 3.

GBP/JPY targets a move back to 164.67 and USD/JPY to 131.55.

Author

Brian Twomey

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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