Blake Morrow
Chief Currency Strategist, Wizetrade
Blake Morrow
Chief Currency Strategist, Wizetrade
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I have been long the pair for several weeks.
Getting back on point, over recent years the USD/JPY and SPX have enjoyed a very “parallel” relationship. I have argued many times the last leg of this market rally in 2013 was a combined effort by the Federal Reserve AND the Bank of Japan when they indeed launched their massive QE efforts.
Present day, one of the reason why months ago I shorted the USD/JPY and went long JPY is there was a major divergence in the JPY and SPX. See article here in the FX Cafe.
Today, very similar setup. The SPX rallied back (retraced) about 80% of its sell off from 2 weeks ago. The USD/JPY? 50%. That “divergence” tells me that when the market would move down (like the SPX is today) the risk of a breakdown (larger) could be in store for the USD/JPY. So, it should be no mystery why the USD/JPY is testing 102.00 currently.
Frankly, if the USD/JPY breaks the 101.00 major support in the coming days, stock market bulls may want to get defensive.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I have been long JPY against most majors for last several weeks and also short equities via ETF’s
Blake Morrow
Chief Currency Strategist, Wizetrade
Blake Morrow
Chief Currency Strategist, Wizetrade
Breakout points are 87.70-88.15
Blake Morrow
Chief Currency Strategist, Wizetrade
Have a wonderful Easter weekend and holiday.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I entered a long USD/NOK trade yesterday following the USD/SEK breakout.
The AUD/CAD has been setting up as a “Gartley” for the last couple months. I have kept it on the radar and I want to thank @nigelcapital for making sure I looked at it today. The confluence of the 161% extension and 78.6% retracement comes in at 1.0400 (give or take). The reaction (if we get there), and looking for a reversal pattern will be key in looking for a short entry.
Gartely patterns are great. Precise entries with calculated risk/reward. Just the way I like them. I tend to stick to the basics like the Gartley or Butterfly since I am not a “harmonic” expert by any means.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I have no position in the AUD/CAD, but if we get to 1.0400 I may. :^)
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