$GBPJPY LONG
Published 01/11 - RISK ON TRADE
IF risk on sentiment returns to the market (even in the short term), JPY will continue to weaken across the board as USDJPY will push higher towards 114.50 resistance. USDJPY bulls defended the 112 handle as USTs found resistance and equities have bounced for now.
Also, new positive brexit commentary is out today, with Raab, the brexit secretary, announcing the deal could be finalized on Nov21 and therefore ready to be signed at the December EU summit. GBPUSD rallied over 1% on the news that a financial services deal has been agreed to allow UK banks to continue operations in Europe, The UKs largest sector.
While this is positive news, the Irish backstop is still the main blockage, so no real sustainable move higher in GBP will happen until there is a resolution to this issue, so whether or not this is a relief rally we will see, as GBP is overly extended to the downside.
not looking for any sustainable moves higher here... short term swing trade.
Technically the market has formed an inverted head and shoulder formation, the premise for the trade is to wait for a nice secondary pullback on 240m TF to the fib 50 where will take entry, aiming for 149 handle which will offer 300-400 pips depending on the entry
IF risk on sentiment returns to the market (even in the short term), JPY will continue to weaken across the board as USDJPY will push higher towards 114.50 resistance. USDJPY bulls defended the 112 handle as USTs found resistance and equities have bounced for now.
Also, new positive brexit commentary is out today, with Raab, the brexit secretary, announcing the deal could be finalized on Nov21 and therefore ready to be signed at the December EU summit. GBPUSD rallied over 1% on the news that a financial services deal has been agreed to allow UK banks to continue operations in Europe, The UKs largest sector.
While this is positive news, the Irish backstop is still the main blockage, so no real sustainable move higher in GBP will happen until there is a resolution to this issue, so whether or not this is a relief rally we will see, as GBP is overly extended to the downside.
not looking for any sustainable moves higher here... short term swing trade.
Technically the market has formed an inverted head and shoulder formation, the premise for the trade is to wait for a nice secondary pullback on 240m TF to the fib 50 where will take entry, aiming for 149 handle which will offer 300-400 pips depending on the entry
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