[B]My picks:[/B] Selling JPY Cross Rallies, Currently Short EURJPY
[B]Expertise:[/B] Fundamentals Combined With Technicals
[B]Average Time Frame of Trades:[/B] 1 Day - 1 Week
Open positions same as yesterday:
Risk aversion remains a lingering theme in the markets, and as a result I think it’s worthwhile to sell JPY cross rallies. My order to sell [B]EURJPY [/B]at 133.80 (38.2% fib of 136.90-131.74 and the July 2 lows) was triggered on Tuesday morning, and with the 100 SMA offering support at 130.82, I’ve closed half my position and moved my stop to breakeven as I want to remain in the game in case we saw sharp declines in FX carry trades. Indeed, with the G8 meeting through the end of the week, there is potential for market-moving commentary to hit the wires.
[B]EURCHF [/B]remains range bound, as price continues to trade within a falling channel formation with support at 1.5145/50 and resistance at 1.5230. I bought the pair yesterday at 1.5157 and I’m looking to continue buying at support as long as it holds. That said, I am avoiding selling EURCHF at all costs as the Swiss National Bank has made it known that they plan on continuing their physical intervention in the markets to prevent an appreciation of CHF against EUR.
Finally, I remain short [B]GBPCHF [/B]following the pair’s break below a rising trendline that has held throughout May and June at 1.7650. I sold the pair at 1.7641 on Monday, and I’m looking toward the 200 SMA at 1.7288 as an initial target and 1.7000 as a secondary target (psychological support, the 100 SMA, and fibonacci support).