USD still holding, great attraction, at least for now
Trade set up - We look to trade a closing break above the 2018 highs (114.55). In our view, the prospect of an initial stop run is high should we see the highs taken out, hence our bias to wait for a close through the level to confirm an extension of the bullish move, where we would target a new range of 115.72 and 116.16.
We would keep position size low and put a stop loss at 112.940, although would look to trail this to 113.60 should price react positively to the raft of key US data out this week.
Why we like this trade - The time for selling the USD is coming, however, as it stands the USD still holds many attractions and with price pressures seen in this week’s US CPI print and retail sales, should solidify calls for a December hike and perhaps March too.
Thursday's key speech from Jerome Powell is also a key consideration.
The broader outlook for USDJPY remains constructive as both price, and the RSI is trending higher. The series of higher highs & lows from last week gives a short-term bullish bias and should we see equities find a better feel this week, then USDJPY should feed off this and push higher.
The advance from the October low of 111.38 has stalled ahead of 114.00, ahead of the 2018 high of 114.55, and this interests us because it's always interesting to see how price behaves at critical levels.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
We would keep position size low and put a stop loss at 112.940, although would look to trail this to 113.60 should price react positively to the raft of key US data out this week.
Why we like this trade - The time for selling the USD is coming, however, as it stands the USD still holds many attractions and with price pressures seen in this week’s US CPI print and retail sales, should solidify calls for a December hike and perhaps March too.
Thursday's key speech from Jerome Powell is also a key consideration.
The broader outlook for USDJPY remains constructive as both price, and the RSI is trending higher. The series of higher highs & lows from last week gives a short-term bullish bias and should we see equities find a better feel this week, then USDJPY should feed off this and push higher.
The advance from the October low of 111.38 has stalled ahead of 114.00, ahead of the 2018 high of 114.55, and this interests us because it's always interesting to see how price behaves at critical levels.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
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