A Momentous CADJPY Selloff Still Within Technical Confines.My picks: Long CADJPY Expertise: Combining Money Management with Fundamental and Technical Analysis Average Time Frame of Trades: 3 days - 1 week The Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. has put in for an aggressive rally across the board the past four active trading sessions. However, the usual catalyst for such an aggressive move in this particular currency's favor (risk aversion risk aversion The tendency of investors to avoid risky investments. Thus, if two investments offer the same expected yield but have different risk characteristics, investors will choose the one with the lowest variability in returns. ) has been relatively lax LAX - LAnguage eXample. A toy language used to illustrate compiler design. ["Compiler Construction", W.M. Waite et al, Springer 1984]. . This sharp decline made quick work of my AUDJPY breakout setup from last week. Following the market's bias, I was waiting for a break above the mid-point of the July to October plunge at 79.65 to signal the next upthrust on a well-established bull trend. However, the market would immediately struggle and was not able to set a daily close above the closely watch 80 level. Come Monday, the pair was set on a step reversal; and I was stopped out. Looking at the yen crosses this week, momentum is still backing this typically safe-haven currency. However, many of the liquid pairs are coming upon support. What's more, the fundamental drive for this move has long been lacking. There is little momentum behind an unwinding of risk and the Japanese economics are far from encouraging on their own. The extended run this currency has made could easily find at least a temporary rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective and a solid technical floor can further bolster expectaitons of a turn. Looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. the right mix, I am drawn to CADJPY. This pair has tumbled over 500 points in a matter of a week; and yet it still fits within a very prominent and mature rising trend channel. There is Canadian event risk in CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I and retail sales numbers; but the real threat to a breakout will come through risk trends. I will set my entry on two (half my normal size) lots at 84.20. The initial stop on both will be 83.00. The first target will equal risk at 85.40. The second objective will be 87. For trade management, I will move up the stop on the second half of my position to breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations when the first half takes profit. If momentum is indeed over-extended, the first objective should be met relatively quickly. 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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