Today has been a tough day as I was literally glued in front of my PC trading… we don’t get FIVE tradable news everyday.
Anyways, I hope you did well, I picked up couple hundred pips on JPY pairs, as a matter of fact, I timed the entry on GBP/JPY right around 130.80, and if you were watching the market, you’d know that right now GBP/JPY is around 135.00 level…
This is what I wrote in my weekly outlooks this week, I thought I better share with you, this report came out on Sunday May 30, 2010:
“Last week could be considered as a consolidation week. We saw some initial weakness in the market as concerns over Europe once again surfaced, but with the lack of momentum, market eventually turned around by the end of the week…
This kind of market reaction is typical as traders have become fatigued over the recent volatility, combined with lack of a stream of negative news to sustain the risk aversion sentiment, short traders are likely to want to protect their profits by short covering and investors will look to take advantage of the current undervalued market.
It is also safe to expect market to rebound as based on technical analysis, we’ve settled in a range where the market has found equilibrium. The next move will depend on fundamental catalysts, and once of the most traded news release this week is the NFP.
NFP is going to show almost 465K jobs created last month. This is going to strengthen world economic recovery, which in term will be good for risk appetite. This week should be driven by this sentiment and I’d be looking to go LONG on carry trades and high yield commodity currencies as they will benefit from this sentiment greatly, especially after the last few weeks of heavy depreciation.
Therefore, I’d be looking to:
Basically buy carry trades as I do expect to see a much weaker JPY this week. We could see about the 92 to 93 levels on the USD/JPY should the market start to price in this possible release before Friday.
Aside from the weak JPY, I would expect to see USD being neutral. Demand for USD should be steady as now USD appears to be much better currency which provides better stability and return, compared to EUR or even GBP…”
Now if you followed my analysis and waited for JPY to strength then jump in, on any of the above pairs, you’d be doing pretty good today; considering it is only Tuesday, there is more potential for JPY weakness to develop…
I hope this helps you in your trading. And don’t forget to join me in my live seminar along with Tradethenews.com this Friday as we look at the most traded news in the currency market, NFP (Nonfarm Payroll)
For more details, please visit my blog:
NFP (Nonfarm Payroll) Free Seminar with Henry Liu June 4, 2010
I look forward in trading with you,
Thanks,
Henry Liu
Related posts:
- Forex Market Update & Analysis 06/07/10
- Forex Market Weekly Analysis March 22, 2010
- FOREX – NFP Nonfarm Payroll (12/04/09) and Market Analysis
- Daily Forex Market Review 10/10/11
- Daily Forex Market Review 10/11/11
- Daily Forex Market Review 09/30/11
- Daily Forex Market Review 09/29/11
- Daily Forex Market Review 10/06/11
- Daily Forex Market Review 10/07/11
- Daily Forex Market Review 10/05/11
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