NOKJPY | Daily Outlook | Trade IdeaLooking at the Norwegian Crone/Japanese Yen (NOKJPY) daily chart we can see that it has been ranging for a while after bouncing of our key price level at 12.250 a few months back and has been consolidating since then after failing to break above 12.880.
Now looking to the right we can see that NOKJPY just broke out of our current consolidation and if it manages to close below 12.600 I’ll be looking to hold my sells all the way down to 11.620 with my stops at 12.800.
NOKJPY
FX Update: One-two punch with USD-, and now JPY strength.Summary: The strong USD and now a strong JPY, together with other market indicators suggest a rather strong wave of risk aversion rolling over markets here on spreading Covid restrictions in Europe and as we await the US Fed Chair nomination announcement and wonder to what degree it matters beyond a knee-jerk reaction. Next week an interesting test for markets as we are set for a US holiday just after the latest PCE inflation data and FOMC minutes next Wednesday.
FX Trading focus: Risk off patterns across FX as USD and now JPY trade firmer
In this morning’s Saxo Market Call podcast, we looked at evidence suggesting risk conditions are worsening, particularly highlighting the Global Risk indicator, which has slipped into negative. This is an indicator I mostly use to assess the conditions for emerging market currencies, and given their recent woes (very importantly ex-CNH, which is heavily managed, to say the least) the indicator fits with the market action. The sharply stronger JPY today suggests that FX traders may be waking up to this kind of market input as well. US longer treasury yields are a very important factor for JPY direction, but so are credit conditions and carry-trade related currency weakness or strength for the bond-focused Japanese investments, particularly in EM in the most recent cycle, due to the lack of carry within G10.
EM credit spreads have widened modestly since bottoming out early in the summer, but the recent strong USD has administered quite a beating to many EM exchange rates, and this week’s Turkish lira devaluation (more below) has added to that story and I wonder if there is a bit of linkage from that into the stronger JPY this week after a brief stab at 115.00 in USDJPY on Tuesday. The NOKJPY chart below shows the no mercy squeeze that some consensus trades linked to commodities and relative central bank outlooks have suffered over the last month, but also the degree to which the weak euro and concerns for the EU outlook are dragging down peripheral European currencies (from SEK and NOK to CEE currencies). FX volatility has undergone a significant breakout over the last week, and a spike in the JPY could add considerable energy to that development. Of course, the Swiss franc is not in that category with the other EU peripheral currencies and it is remarkable that EURCHF has sliced through 1.0500 this quickly. Recent weekly sight deposit data shows the SNB putting up a defense, but apparently unable to hold the line and EURCHF is trading to 6-year lows.
Of course, adding specifically to the fresh Euro weakness this morning, we have Austria announcing a Covid lockdown and Germany’s health minister saying that it can’t rule out lockdowns for Germany.
Later today, watch out for BoE Chief Economic Pill out speaking, with an intriguing topic in Fed Vice Chair Clarida’s speech later today (“Global monetary policy coordination”).
Chart: NOKJPY
The NOKJPY captures the whiplash inducing shifts on a number of fronts over the last month, as mentioned above, as over-ebullient NOK longs have been squeezed by crude oil shifting into a range-bound price action (and now under significant pressure today on European Covid lockdown news) and the very weak euro taking down pro-cyclical currencies at its periphery. There have been a number of major weak NOK episodes in Q4. The reversal here is taking on such a scale that it looks very significant and becomes a game changer if we get a reversal all the way back to the 12.00 area, hence reversing the entire recent rally wave. Other JPY crosses are threatening major breakdowns as well.
Brainard or Powell? Get it over with already, redux. I am tired of pondering how the market will react to the announcement of whether Biden will give Powell the nod for a second term or nominate Brainard. Supposedly the market is about two-to-one in favor of Powell getting a second term, and we are leaning for higher odds of Brainard. The fact that Democratic Senator is meeting with both Brainard and Powell suggests that the nomination is a part of the horse-trading in whether the $1.7 trillion US social- and climate spending bill will pass. A vote for that bill is up in the House today.
Turkish lira spinning into the abyss after latest cut – the lira tried a bit of a comeback this morning, but is trading as of this writing back close to the record lows posted yesterday, likely on the wave of risk-off in the wake of the Covid lockdown news in Europe this morning. Yesterday’s fresh slide was triggered by the Turkish central bank cutting rates for the third time, this time by 100 basis points to take the rate to 15%. The bank offered guidance suggesting that the rate cutting cycle will conclude in December, but the market entirely lacks trust in the signaling and interference from Turkish president Erdogan, and the backdrop, as noted above, is not at all supportive for EM currencies. The lira is down some 35% against the US dollar from the March move by Erdogan to replace the central bank governor with the current Kavcioglu.
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NOK Nokia Chief Exec: whatever it takes to lead in the 5G spaceNOK Nokia Chief Executive: we will do “whatever it takes” to lead in the 5G space!
On 7/6/2021 BNP Paribas brokerage Upgraded the rating for NOK Nokia from Neutral to Outperform and set a $7.70 price target.
I extended the Fibonnaci retracement tool from the strong support to the previews top and came out with a 6.5usd price target.
NOKJPY long on DailyHi Traders,
This is our view on this cross for the next few days.
#NOKJPY
BUY 12.43
SL 12.29
TP 12.71
We remind you that this is only a forecast based on what current data are.
Therefore the following signal will be activated only if the rules of our strategy are strictly respected.
Eventually, any updates will be given in the comment section below
———————————
Trading Kitchen
NOK - HOW TO PREVENT FOMO TRADING 1. Ask yourself why you want to invest, is it out of jealousy from others cashing in big? Do you want to be apart of the next big hype stock? If you answer yes to either of these do not trade, trading from this emotional perspective will only result in you losing money.
2. Warren Buffet said ''be greedy when others are fearful and fearful when others are greedy'' apply this logic to your decisions, chances are if the stock has pumped tenfold already and people are still greedy this could be an indicator you shouldn't trade - there are always more opportunities.
3. Ask yourself ''am I a sheep?'' Sheep do not make money in the stock market, do not blindly follow peoples ideas, question them and formulate your own understanding.
4. Where did you see the stock? if it was on the news the ship has sailed and you shouldn't buy it, at this point it is already too late.
5. Be careful of stocks that appear to be pushed by the same groups of people - this indicates little to no adoption and they are hoping that you buy their bags from them.
6. If you can't explain what the company does and why it's a good idea do not buy it. Always do your research first, learn about the team, the product, the vision and financials before investing.
7. If the market is mostly green its time to sell, if the market is mostly red, its time to buy.
8. Is it a meme stock? if yes either be an early adopter or do not buy it.
9. Have you got spare capital? always take into account your financial situation and be prepared to lose - never invest more you are willing to lose.
10. Learn to take losses - otherwise, you will end up holding your bag down a -80% drop.
Hope this was useful
''Buy Big Sell BIGGER'' - MegaWhale
NOKIA $NOK still got some fight leftOn the one hour chart, there are a lot of indications we could see a bounce up here back to around the $5 range - not sure if the price will continue after that, be sure to use a tight stop loss as these hype stocks have shown large amounts of volatility and can drop like a falling knife very fast
NOK is showing bearish signs on the one hour time chart - expecting a pullback to lower support - alot of people are definitely bullish on this stock and it will be very interesting to see how it plays out long term but the whole market has had an impressive week and it is hard to tell whether the market manipulation is suppressing the price or wether the hype has, in fact, died down - no matter be safe and remember......
''Buy Big Sell BIGGER'' - MegaWhale (;
NOKJPY: two tradesHi Traders,
This is our view on this cross for the next few days.
#NOKJPY
BUY 12.250
SL 12.160
TP 12.470
#NOKJPY
SELL 12.475
SL 12.555
TP 12.340
We remind you that this is only a forecast based on what current data are.
Therefore the following signal will be activated only if the rules of our strategy are strictly respected.
Eventually, any updates will be given in the comment section below
———————————
Trading Kitchen
USD/NOK: PRICE ACTION + BEARISH HARMONIC GARTLEY 🔔Welcome back Traders, Investors and Community!
Analysis of #USDNOK
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Strategy: Bearish Gartley on H4 timeframe - We will be waiting for all the confirmations to enter in this trade.
A clear chart is Always the best business card for a trader.
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Your support and feedback will always welcome
Thank you for your time.
The information contained herein is not intended to be a source of advice or credit analysis
Regards,
Walter
Nokia NOK first-ever trial run of 4G & 5G fixed wireless accessNokia Corporation NOK recently announced that it has teamed up with Mobily, a Saudi Arabia-based telco, in a concerted effort to conduct the first-ever trial run of 4G and 5G fixed wireless access (FWA) network slicing over the live commercial network of the latter. Notably, the Finnish telco is the first vendor to unveil this technology. As part of the collaboration, Mobily has capitalized on Nokia’s AirScale 4G/5G base stations along with its NetAct solution, which is a field proven network management system that supports network elements in Wi-Fi, telco cloud, public safety along with mobile radio and core. (Source: zacks.com)
Please leave me a message if you want to test the buy and sell indicators that i am using.
NOK/JPY MULTI-TIMEFRAME ANALYSIS - UPDATE!!!Hello Traders, here is the full analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied.
NOK/JPY MULTI-TIMEFRAME ANALYSIS Hello Traders, here is the full analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied.