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6J1! trade ideas

JPY Strengthens Amid BoJ Tightening, USD Faces HeadwindsThe Japanese Yen (JPY) exerted downward pressure on the US Dollar (USD) during the early European session. Despite the USD's initial attempt to recover value following yesterday's decline, the JPY continued to strengthen due to rising expectations that the Bank of Japan (BoJ) may implement further monetary policy tightening. The BoJ recently raised its short-term rate target by 15 basis points (bps), adjusting it to a range of 0.15%-0.25%. Additionally, the central bank announced plans to reduce its monthly purchases of Japanese government bonds (JGBs) to ¥3 trillion, starting in the first quarter of 2026. These moves have bolstered the JPY, adding to its momentum against the USD. Meanwhile, the upside potential for the USD/JPY pair appears limited as the USD encounters significant headwinds. Expectations are growing for a 50-basis point (bps) interest rate cut by the US Federal Reserve (Fed) in September. The CME FedWatch tool indicates a 74.5% probability of this rate cut at the September meeting, a sharp increase from the 11.4% chance reported just a week ago. From a technical perspective, incorporating our Supply and Demand analysis, we missed the initial entry in the Supply area due to a rapid spike that reached our entry point. Nonetheless, we are monitoring for a potential retest of that area for a possible short position. USD/JPY Chart ✅ Please share your thoughts about Japanese Yen Futures in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
CME:6J1!
by FOREXN1
1
WEEKLY FOREX FORECAST July 29-Aug 2: USD EUR GBP AUD NZD CAD CHFThis is Part 2 of the Weekly Forex Forecast for July 22-26th. In this video, we will cover: USD Index, EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCAD, USDCHF, USDJPY Enjoy! May profits be upon you. Leave any questions or comments in the comment section. I appreciate any feedback from my viewers! Like and/or subscribe if you want more accurate analysis. Thank you so much! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
CME:6J1!
by RT_Money
1
Options Blueprint Series: Tailoring Yen Futures Delta ExposureIntroduction In options trading, a Bull Call Spread is a popular strategy used to capitalize on price increases in the underlying asset. This strategy involves buying a call option at a lower strike price while simultaneously selling another call option at a higher strike price. The net effect is a debit trade, meaning the trader pays for the spread, but the risk is limited to this initial cost, and the profit potential is capped by the sold call option's strike price. For traders interested in Japanese Yen Futures, the Bull Call Spread offers a way to potentially profit from expected upward movements while managing risk effectively. Delta exposure, which measures the sensitivity of an option's price to changes in the price of the underlying asset, is a crucial aspect of this strategy. By carefully selecting the strike prices of the options involved, traders can tailor their delta exposure to match their market outlook and risk tolerance. In this article, we will delve into the mechanics of Bull Call Spreads, explore how varying the sold unit's strike price impacts delta exposure, and present a practical case study using Japanese Yen Futures to illustrate these concepts. Mechanics of Bull Call Spreads A Bull Call Spread is typically constructed by purchasing an at-the-money (ATM) call option and selling an out-of-the-money (OTM) call option. This strategy is designed to take advantage of a moderate rise in the price of the underlying asset, in this case, Japanese Yen Futures. Components of a Bull Call Spread: Buying the ATM Call Option: This option is purchased at a strike price close to the current price of the underlying asset. The ATM call option has a higher delta, meaning its price is more sensitive to changes in the price of the underlying asset. Selling the OTM Call Option: This option is sold at a higher strike price. The OTM call option has a lower delta, reducing the overall cost of the spread but also capping the profit potential. Delta in Options Trading: Delta represents the rate of change in an option's price concerning a one-unit change in the price of the underlying asset. For call options, delta ranges from 0 to 1: ATM Call Option: Typically has a delta around 0.5, meaning if the underlying asset's price increases by one unit, the call option's price is expected to increase by 0.5 units. OTM Call Option: Has a lower delta, typically less than 0.5, indicating less sensitivity to changes in the price of the underlying asset. By combining these two options, traders can create a position with a desired delta exposure, managing both risk and potential reward. The selection of strike prices is crucial as it determines the overall delta exposure of the Bull Call Spread. Impact of Strike Price on Delta Exposure Delta exposure in a Bull Call Spread is a crucial factor in determining the overall sensitivity of the position to changes in the price of the underlying asset. By adjusting the strike price of the sold call option, traders can fine-tune their delta exposure to align with their market expectations and risk management preferences. How Delta Exposure Works: Higher Strike Price for the Sold Call Option: When the strike price of the sold call option is higher, the overall delta exposure of the Bull Call Spread increases. This is because the sold option has a lower delta, contributing less to offsetting the delta of the purchased call option. Lower Strike Price for the Sold Call Option: Conversely, a lower strike price for the sold call option decreases the overall delta exposure. The sold option's higher delta offsets more of the delta from the purchased option, resulting in a lower net delta for the spread. Examples of Delta Exposure: Example 1: Buying a call option with a strike price of 0.0064 and selling a call option with a strike price of 0.0065. Purchased call option delta: 0.51 Sold call option delta: 0.34 Net delta: 0.51 - 0.34 = 0.17 Example 2: Buying a call option with a strike price of 0.0064 and selling a call option with a strike price of 0.0066. Purchased call option delta: 0.51 Sold call option delta: 0.21 Net delta: 0.51 - 0.21 = 0.29 As illustrated, the higher the strike price of the sold call option, the greater the net delta exposure. This increased delta indicates that the position is more sensitive to changes in the price of Japanese Yen Futures, allowing traders to capitalize on more significant price movements. Conversely, a lower strike price reduces delta exposure, making the position less sensitive to price changes but also limiting potential gains. Case Study: Japanese Yen Futures Market Scenario: Recently, a downtrend in Japanese Yen Futures appears to have potentially reversed, presenting an opportunity to capitalize on a new potential upward movement. To take advantage of this potential uptrend, we will construct a Bull Call Spread with specific entry, stop loss, and target prices based on Yen Futures prices (underlying). Underlying Trade Setup Entry Price: 0.0064 Stop Loss Price: 0.00633 Target Price: 0.00674 Point Values and Margin Requirements Point Values: For Japanese Yen Futures, each tick (0.0000005) equals $6.25. Therefore, a movement from 0.0064 to 0.0065 represents a 200-tick change, which equals $1,250 per contract. Margin Requirements: Margin requirements for Japanese Yen Futures vary but are currently set at $2,800 per contract on the CME Group website. This amount represents the minimum amount of funds required to maintain the futures position. Valid Bull Call Spread Setup Given the current market scenario, the following setup is selected: 1. Purchased Call Option Strike Price: 0.0064 (ATM) Delta: 0.51 2. Sold Call Option Variations Strike Price 0.0068: Delta: 0.08 3. Net Delta: 0.42 Reward-to-Risk Ratio Calculation Due to the limited risk profile of Debit Spreads, where the maximum potential loss is confined to the initial debit paid, stop loss orders will not be factored into this reward-to-risk ratio calculation. Debit Paid: 0.000085 (call purchased) - 0.000015 (call sold) = 0.00007 Potential Gain: Sold Strike - Strike Bought - Debit Paid = 0.0068 - 0.0064 - 0.00007 = 0.00033 Potential Loss: Debit Paid = 0.00007 Reward-to-Risk Ratio: 0.00033 / 0.00007 ≈ 4.71 This ratio indicates a favorable risk-reward setup, as the potential reward is significantly higher than the risk. Conclusion In this article, we have explored the intricacies of using Bull Call Spreads to tailor delta exposure in Japanese Yen Futures trading. By strategically selecting the strike prices for the options involved, traders can effectively manage their delta exposure, aligning their positions with their market outlook and risk tolerance. Key Points Recapped: Bull Call Spreads: This strategy involves buying an at-the-money (ATM) call option and selling an out-of-the-money (OTM) call option to capitalize on moderate upward price movements. Delta Exposure: The delta of the options involved plays a crucial role in determining the overall sensitivity of the spread to price changes in the underlying asset. Strike Price Variations: Adjusting the strike price of the sold call option can significantly impact the net delta exposure, offering traders the flexibility to fine-tune their positions. Case Study: A practical example using Japanese Yen Futures illustrated how varying the sold unit's strike price changes the delta exposure, providing concrete insights into the strategy. Risk Management: We always emphasize the importance of stop loss orders, hedging techniques, avoiding undefined risk exposure, and precise entries and exits ensures that trades are structured with proper risk controls. By understanding and applying these principles, traders can enhance their ability to navigate the complexities of options trading, making informed decisions that align with their trading objectives. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME:6JU2024Education
by traddictiv
2
WEEKLY FOREX FORECAST: UPDATES!! Wed July 17thWe are updating you on the Forecasts posted for July 15-19th. Was the analysis accurate? Did we reach our targets? Was the Bias correct? USD Index, EUR, GBP, CAD, AUD, NZD, CHF, (usdcad, usdchf) SP500, Nasdaq, Crude Oil, Gold, Silver Enjoy! May profits be upon you. Leave any questions or comments in the comment section. I appreciate any feedback from my viewers! Like and/or subscribe if you want more accurate analysis. Thank you so much! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
CME:6J1!
by RT_Money
volume spread analysis on JPY indexCME 6J Japanese Yen index is down very significantly for long time Bank of Japan tell public to day that BOJ already do intervention to protect JPY not to make it drop more than this Now based on VSA trading analysis there are 1H candle stick show extremely high volume with small candle body this can be interpreted that some big player absorbed the selling pressure using limit buy order so open long position here have some edge from both BOJ intervention news + VSA analysis
CME:6J1!Long
by tofinse
Extreme volume only indicator in this trade set up is volume please check 6J weekly volume this is the highest volume since 2013! and that is meaningful in technical analysis confluent with fundamental news that Japan government try to protect JPY currency also you can backtest on weekly chart that every time bullish engulfing happen with volume this set up work almost every time however I set RR ratio just 1.5 because this is still considered as counter trend trade If USD keep strong compare with JPY Japan will have problem import goods Hope Japan successfully protect their currency Hope I can make some money from this trade
CME:6J1!Long
by tofinse
Intervention risks in JPYThe 6J is the Chicago Mercantile Exchange contract for the JPY futures. We have been in a bearish wedge and probing pretty key support. Our listeners of our daily show have asked our team how close we would be to intervention from the Ministry of Finance (MOF), or intervention rhetoric from the Bank of Japan in recent weeks. Our team has explained almost daily that we should not focus on one pair (i.e. USDJPY) but more of the JPY in general. Today, with the move of the USDJPY above the 152.00 level, the risks have increased. But the fact that the 6J has reached support and currently breaking lower, the risks have increased quite a bit for intervention from the MOF especially if this broad based moved picks up the pace lower. Key support is at the 127% extension at .006446 in the coming days, RSI is divergent so technical risks are high for a reversal too.
CME:6J1!Long
by ForexAnalytixPipczar
1
Yen Futures: Resale of Call options 0.006850 Bearish SentimentThe targets set for the Yen on February 19th have almost been reached. The uptrend still has a small potential to reach target number 2, but after that the Yen's downtrend will most likely continue. This is supported by COT reports and activity in option portfolios, which were formed on February 29 (at the local minimum) on the CME exchange. The prices of futures and volatility have increased. Stated that someone BIG and WELL INFORMED market participant is profiting from reselling 0.00685 call options without waiting for them to become ITM (in-the-money). Can you guess why?)
CME:6JH2024Short
by ClashChartsTeam
A Case for 6J1!l Corrective Wave AnalysisExpanding Triangle Rules Most rules are the same as for contracting triangles, with these differences: Wave C, D, and E each move beyond the end of the preceding same-directional subwave. (The result is that going forward in time, a line connecting the ends of waves B and D diverges from a line connecting the ends of waves A and C.) Subwaves B, C, and D each retrace at least 100 percent but no more than 150 percent of the preceding subwave. Guidelines Most guidelines are the same as contracting triangle, with these differences: Subwaves B. C and D usually retrace 105 to 125 percent of the preceding subwave. No subwave has yet been observed to subdivide into a triangle. worldcyclesinstitute.com
CME:6J1!Short
by mmhogsett
Bullish Shark on the Japanese Yen Futures Feb 16th ContractThere is a Bullish Shark visible on the Japanese Yen Futures contract expiring on Feb 16th 2024, there is also RSI Bullish Divergence on the 4 Hour Timeframe at this level. A higher low bounce in the JPY from here would likely result in further tightening of the Japanese carry trade, which would be bad for stock and particularly bad for REITs and Financial Institutions. Saying as though it is the Feb 16th Contract that this Harmonic has completed on, I would expect the JPY to rise sharply leading into the expiration of this contract.
CME:6JG2024Long
by RizeSenpai