Slow start to the week so far…
The market has been relatively quiet during today’s Asian session. The risk sentiment has soured again with Pres. Trump tweeting that he wants the EU to remove all their trade barriers and tariffs or else…
Also, the US administration further mentioned that they are looking to restrict Chinese investments in specific US companies and sectors.
This has soured the risk sentiment somewhat, to the benefit of safe haven currencies.
Our pair selection for today:
We have chosen the NZDJPY as one of the pairs we will be watching closely today to look for trading opportunities.
NZDJPY – H4
NZDJPY – M30
Those who are following our forecasts will know that we have been short on the NZDJPY from last week. We took profit last week after the NZD GDP data was released.
With the recent risk tone and softer NZD data, the NZDJPY has seen a lot moves to the downside. As long as the risk tone does not change we believe further downside is possible on this pair.
For this reason, we would continue to look for short opportunities at important resistance levels.
Any drastic changes to the recent risk sentiment would have a big impact on this trade idea so keep a close eye on those.
Also, technically the pair is close to very important support levels on the daily and weekly charts, so keep that in mind if you are planning to hold the trade.
If you found this helpful do us a big favor and remember to like and share on Facebook and Twitter.
Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
Copyright © 2016 by Jaba Investments (Pty) Ltd. All rights reserved