After all the yen pairs gap open lower, the European pairs all recovered by end of day, not a big up move so not sure I would call this a reversal, just one of those cases where trading against the opening gap would had paid off,
Yen stays on top but it might be the Aussie we need to watch
Looking at the AUDJPY today we get a bullish engulfing reversal right at support, add US Stocks look ready to rally, all this spells good times for Aussie and looming selloff for Yen
What I am Trading
YTD top currency AUD looks ready to move higher after a month long pull back. Many ways to play this, one I like is short EURAUD, nice engulfing reversal on Tuesday, if this can retrace that month long counter trend rally, that would be a 500 pip move from here
Yen stays at #1 for 6th day, but it is the Comdolls that are in rally mode, My featured trade from yesterday, Short EURAUD was good for 120 pips today
Pound followed by USD lead currencies higher, Yen holds the #1 spot but has done nothing, the current top SW trade is NZDJPY, if you had taken that trade on March 22 ( the first day it was top SW trade) you would be even today. All the action has been in #2 through #7
That is how this market goes sometimes,
Chart of the Day
Here is the EURUSD daily chart, look how price rejected the 200 day moving average and headed lower.
Price reversal at the 200 ma has been the most reliable trade entry signals I have seen over my years trading FOREX
Here is my weekly market review
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1st quarter is in the books and here is a YTD by % look at all pairs making up the 8 majors, 16 of the 28 have moved less than 2%. Slow times in the FOREX world. J.D. Rockefeller is noted for saying “The way to make money is to buy when blood is running in the streets.” There is not a lot of blood out there right now so we need to stay patient and be content with small moves
It was a good day for the Yen, looking at my Strong Weak rankings over last three trading days you can see there just is not much movement
NZDJPY has been top SW trade for 8 trading days and has moved a whole 50 pips, this just shows how slow this market is right now
Strong day for the Yen as it opens a sizable gap over the rest.
Top Strong Weak trade short NZDJPY after 9 days as top trade it has finally broken the +100 pip mark, this is one of those trades that would had taken a lot of faith and patients to bag that 100 pips
By the looks of my rankings compared to yesterday you might think it was a flat day, anything but, All Yen pairs rallied higher in early trading only to reverse starting at 2 pm based on Action by US Fed, more on this later
We have a new sheriff at the 8th spot, AUD was top ranked on March 20th and has completed its decent.
Short AUDJPY is now my top SW trade and like the NZDJPY before it, this is slowly grinding lower with the 200 ma not far below, US stocks will have a lot to do with this trade as AUD tends to rally with US stocks and Yen likes to rally as US stocks fall.
Here is my weekly market review video
Everyone have a great weekend
Here is my current Strong Weak rankings
I can agree with that assessment I have a nice short on the AJ to close out last week.
Now the question is does this strength in Yen continue or are we due a pullback,
Yen just logged it’s 14th straight day at #1 , I will post more on this later tonight
If you had gone short all the yen pars at closing price on March 22nd , the first day of the 14 day run for Yen at #1 you would had made the following pips
AUD 109
CAD 233
CHF 224
EUR 265
GBP 131
NZD 121
USD 40
This shows prices are moving very slowly
