Kay Van-Petersen
Kay Van-Petersen, macro strategist at Saxo Capital Markets, digests the market action seen in week 43 and gives his tactical positing. Van-Petersen favours a USD step back, sees gold consolidating, and believes that European equities are overheated.
Day trade
Trade view / 17 August 2016 at 6:01 GMT

USDJPY: Bounce from below 100 signals short covering rally

partner and technical analyst / 3 c analysis
United Kingdom

USDJPY bearish signals on the week and for Tuesday have been confirmed, investors selling the market yesterday for an initial loss of 1 ¾ Big Figs. However, buyers have returned to the market from close to June’s near 3-year base at 99.01 for sentiment to recover by over 1 Big Fig from the day’s 99.54 low. Gains above 100, given similar bounces in June and July, have encouraged short covering in August too and signals remain temporarily bullish.

Management and risk description

Allow room to buy the dip and raise the stop to the entry point if the first target is met.


Entry: Market and 100.27, just above today's Asian low.

Stop: 99.54, yesterday's base.

Target: 101.46, this week's high and 102.28, Friday's top.

Time horizon: Today only.

USDJPY daily chart


USDJPY 4-hour chart
USDJPY 4 hourly - recovery to losses

USDJPY weekly chart
USDJPY Weekly - buyers at 100.00
USDJPY quarterly
USDJPY Quarterly - 50% pullback
 All charts CQG. Create your own charts with SaxoTrader; click here to learn more.

— Edited by Susan McDonald

Non-independent investment research disclaimer applies. Read more
17 August
ElGusti ElGusti
Hi Steve, is this trade stopped out?
18 August
Steve Lucas Steve Lucas it wasn't stopped, but closed it yesrerday


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