Trading ideas: USDJPY short in good shape, buy GBPUSD on dips

The BoE left the stance of its monetary policy unchanged at its meeting that ended yesterday. The vote to maintain the bank rate at 0.50% was 7-2, with Ian McCafferty and Michael Saunders (the two most hawkish MPC members) dissenting in favour of an immediate 25bp hike.

The MPC minutes were largely uneventful, keeping very much to the message from its previous meeting in February.  With financial markets expecting a 25bp hike in May with 90% probability, the MPC clearly did not feel the need to be any more direct, but tellingly nor did they do anything to change market expectations.

This is how MyFXspot.com trades today:

EUR/USD

Trading strategy: Long

Open: 1.2330

Target: 1.2550

Stop-loss: 1.2245

Recommended size: 2.11 mini lots per $10,000 in your account

Short analysis: Pair's broad consolidation persists and monthly RSI is biased up. The trendline off February's high helps limit the upside and the pair slips back below the 10 and 21-day SMAs as well as the daily cloud top. Signals are mixed.

GBP/USD

Trading strategy: Long

Open: 1.4085

Target: 1.4300

Stop-loss: 1.3985

Recommended size: 2.00 mini lots per $10,000 in your account

Short analysis: A spike to 1.4220 and equally sharp pullback give a hanging man signal. However, we see pullbacks as buying opportunities for a run back to the high from early February.

USD/JPY

Trading strategy: Short

Open: 106.00

Target: 1004.00

Stop-loss: 107.00

Recommended size: 2.12 mini lots per $10,000 in your account

Short analysis:  USD/JPY broke below previous 2018's 105.24 and is getting lower. We keep our bearish view with the target at 104.00.

USD/CAD

Trading strategy: Short

Open: 1.2900

Target: 1.2600

Stop-loss: 1.3050

Recommended size: 1.72 mini lots per $10,000 in your account

Short analysis: The USD/CAD offered after lowering of NAFTA tension and dovish Fed hike. The pair broke below 14-day EMA (1.2933) for the first time since mid-February. This could be a bearish signal.

AUD/USD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: Wednesday’s jump and close above a 7-day EMA was a false signal. Latest rally stalls by the 21-day SMAs and short of the 200-day SMA. The ensuing slide sees RSIs biased down again and a long upper wick form on the monthly candle. An important support level is 0.7673 low on March 20.

EUR/GBP

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: Pair sets a new low and RSIs are biased down to keep the overall bear view intact. On the other hand, the long lower wick on yesterday's candle suggests a bounce is due. We will wait for clearer signals before entering a new position.