AUDJPY 1,000 Pips Trade and Major Support.

We talked about long term view on AUDJPY pair about a month ago: AUDJPY – Is It Finally a Turn? Well, it turned to be a turn! And we are here to report, that the trade was closed today at 50% support on weekly chart. Over a 1,000 pips profit and 1 month cooking. Nice start for a summer! Now let’s see what awaits AUDJPY in the future:

We are clearly at major support level: At 90.00 round figure there are not only three previous peaks, but also exact 50% Fibonacci retracement on a weekly chart. A sharp decline bumping into Bollinger bands was a great signal for precise exit of the short trade, but doesn’t suggest that it is time to buy. We are very keen to ride the wave up, but remember – it is a weekly chart we are talking about. So let’s sit tight, watch the battle around 90.00 and wait for weekly 5MA and 8MA come a bit closer together and start closing up. By that time oversold stochs should show some sign of cross-over as well and we will be ready to put an order to buy.

USDJPY pulls back

In a very long term (this is a monthly chart!) we expect Yen to break 107 barrier, but long and painful sideways months are coming before that would happen. However, the most important part to watch at the moment is a red candle touching monthly 5 EMA, which can trigger a fight between short and medium trend.

Short-term trade: buy anywhere between 94.30 and 95 to sell around 98.50 (SL ~ 93)

Med-term trade: Look for reverse pattern on 4H to sell around 98.50-99.50, targeting 90-90.50 (quit if pair rocks through 100.50 again)

Trade Ideas Snapshot – 12 Jun

EURUSD: To Scalp or not To Scalp?

EURUSD is very messy one. On a larger scale there is no trend, no clearance on direction in a long term and fundamental picture from both political and economical view is as blurry from any angle as technical one. However for the risky ones, we want to point out that 4H chart is showing a very classy change of trend pattern with two consecutive higher highs and higher lows. The very nature of uncertainty on the EURUSD market most probably will pull the pair back to the same range we spend most of the time over the last year: 1.31 to 1.33. That gives at least 200 pips of profit. But taking in account unclear stop loss levels and time frames for such development – we are leaving this one to run without us on board.

AUDJPY – Is It Finally a Turn?

It has being some time since we looked at AUDJPY with an interest. And it is for a reason. About a month ago AUDJPY reached the peak and was set to retrace, but stalled. No up, no down for 4-5 weeks. And finally today we see some early signs of the selling it off. We are looking at dynamic support of 200MA on 4H chart – it proved to be a very strong one with 5 fail attempts to break it. One breakthrough was not supported by any indicators on a larger scales, but this time weekly chart looks a bit more keen as well. The Bollinger bands clearly turned at the top, which is a strong sign of “no more up”, stochs are pointing down and 5MA finally crossed 8MA.

GBPUSD Trade Update. Did You Lock 300 pips?

Remember our GBPUSD trade set up from 6th May? Today we publish the same 4H chart again with same divertion indicators, after closing the trade and locking exactly the planned profit of 300 pips.

Need to say, the cable was a bit noughty trying to test the precious highs at the beginning and did the planned fall a bit later than expected, but all-in-all never showed any really concerning pattern and did the right thing coming straight to 1.5250 as planned. Now the question is – will it fall more? Well, from one point of view, the support we were talking about is still there and many traders (like us) would quit the trade about now. From another point of view – the chart is not showing any hesitation as of yet. So holding on to it possible, but risky. Especially given that there is no clear picture of the trend on a larger scale, like monthly chart.

USDJPY 200 pips Mid-term Trade Closed.

Remember our trade we posted a week ago here? Well, it took couple of days for USDJPY to finaly shoot, but oh boy, what a shoot it was! At the moment market is slightly retracing from 102 resistance. We expect a further gains later. However, we got our target profit locked around 101.90ish. 4H Stocks are a good indicator that the main steam is off.