4H Channel Up. Long.SEKJPY has price a Higher Low on the 4H Channel Up (RSI = 66.713, Highs/Lows = 0.0449, B/BP = 0.1010). This is a long call, TP = 12.792. The upside is limited on 1D to a 12.845 Double Top.
JPYSEK trade ideas
SHORT SEKJPY DURING STERILIZATION BY CENTRAL BANKSAfter reaching the upper medium term band for 15 % width of band as permitted by the monetary policy, the Swedish central bank and the BOJ undertook market sterilization to slower the strengthening of SEK in the market. Accordingly, short on the sterilization (short term band) is feasible with the following details:
Short at 13.60 or the current rate 13.40
Stop loss at 13.80
Target T1. 13.20 T2. 12.70
Duration: 2-3 months
Risk Management:
After breaking the 13.20 manage the stop loss to entry rate for risk free trading position management
Note:
To follow and to evaluate the performance of this analysis please click the chart periodically and then >, to include any updates as may be made on this analysis during the trading.
THE BOJ AND THE NORDIC CENTRAL BANKS STERILIZE NORDIC CURRENCIESAfter reaching 15 % + 1 % width of medium term bands as permitted by the applicable regulation, the BOJ and the Nordic's central banks (Sweden, Danish and Norwegian) undertook central banking market sterilization to slower the strengthening of SEK, DKK and NOK by the JPY.
The sterilization will bring those pairs to central band/central parity in short term (short term band is central banking market sterilization). Short the current sterilization is very feasible.
