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USD/JPY STRATEGY SESSION

EUR/USD 1.07698 08:10 06.12
FTSE F-DEC16 6745.750 08:00 06.12
USD/RUB 63.806 08:00 06.12
USD/CHF 1.00590 08:00 06.12
OIL-FEB17 (BRENT) 54.685 08:00 06.12
COPPER-NOV16 2.6553 08:00 06.12
NZD/CHF 0.71775 08:00 06.12
CAD/CHF 0.75864 08:00 06.12
NZD/USD 0.71357 08:00 06.12
EUR/AUD 1.44544 08:00 06.12
CAD/JPY 85.854 08:00 06.12
AUD/USD 0.74454 08:00 06.12
AUD/JPY 84.756 08:00 06.12
GBP/USD 1.27552 08:00 06.12
VTB BANK 0.068930 08:00 06.12
TENCENT HOLDINGS 190.150 08:00 06.12
ROSNEFT' 350.875 08:00 06.12
GOLD VS SILVER 69.8109 08:00 06.12
EUR/GBP 0.84379 08:00 06.12
OIL-JAN17(WTI CRUDE) 51.435 08:00 06.12
SILVER 16.805 08:00 06.12
GOLD/EUR 1090.185 08:00 06.12
GOLD 1173.311 08:00 06.12
NASDAQ F-DEC16 4779.125 08:00 06.12
GOLD VS OIL 21.4558 08:00 06.12
USD/CAD 1.32590 08:00 06.12
S.BANK INDIA 259.675 08:00 06.12
AXIS BANK 460.725 08:00 06.12
TATA STEEL 414.100 08:00 06.12
TATA MOTORS 443.150 08:00 06.12
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By: Adam Stone
May 15th 2014 6:35am GMT, London UK
 

Mid month and we can’t get a grip on the moves of the US equity markets. Time after time, the stock markets are simply not providing the impetus needed for a real break to the upside with any follow through. Yesterday was pretty much more of the same. While the market is surely moving higher in short spurts in an albeit inconsistent manner. The S&P, which we firmly believed would provide us a break yesterday, provided us instead with no reversals which we also explained could have potentially provided an incredible wealth of signals. So we got very little in the way of anything to speak about in regards to the indices but that doesn’t mean it won’t happen today.

What occurred for those not in the loop, the S&P failed to even test the 1900 level as the index just fell lower by 0.47% to 1888. The fact is though, the index is still poised to make a test and today could be the day for serious reversal strategies to kick in as we explained yesterday. But there is lots more going on outside of the indices. Namely, the forex market which for many has become the way to trade at GOptions*

But it all starts with the fundamentals. In the news, which was the driving force behind much of the forex volatility of late, Japan’s GDP grew to its highest level in 2 years. In other words, things are getting better for the massive Asian economy and this turn-around could mean more JPY strength. Since the release of the news earlier today, the JPY has been rather subdued. Most expected the news to be positive for the JPY and as such, the last 2-3 days have been very bearish on the USD/JPY as the JPY strengthened against many of the majors.

After reaching 101.66 yesterday, the market actually bounced higher and is looking to possibly break local resistance at 102. However, please note, this scenario seems unlikely given the news and we would err to the side of caution as it pertains to the USD/JPY. It would be a dangerous game to play with the volatile pair today and binary (and forex) traders would do well to sit this one out until a clear break is seen on the charts.

Note how the daily chart below shows no clear directional bias for the long term as this is a daily chart. The lack of real inertia to one or another direction could spell trouble for reversal strategies and as such, hedged trades to each direction (1 forex and 1 binary contract to opposing directions at similar strikes) or the use of ladder hedge strategies (1 forex, 1 binary, and 2 ladder trades above and below the other contracts) could do very well to take advantage of the range formed on the daily charts here. With end of day options, this could be a safe move

USD/JPY STRATEGY SESSION

* forex is available for trading for non-US traders. Binary options are available to all (including forex pairs with binary options)

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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