I closed my USDJPY short position at a very modest profit as it broke above my line in the sand of ¥83. I think the Japanese Yen stands to weaken across the board, likely driven by forex correlations and a drop in US Treasury Yields.
I still like being short US Dollar, and as my weekly strategy outlook piece points out, I think it's headed lower through this week. I've taken a long position on the NZDUSD via the DailyFX PLUS Trading Signals 'Tidal Shift' signal. As per said writeup, I like it as long as it remains above yesterday afternoon's low of $0.8200 and the week-to-date low of $0.8140 is my "line in the sand".
I've likewise gone EURAUD long once again as it breaks daily highs at A$1.2711, targets subsequent YTD peaks of A$1.2755 and eventually a move much higher. My trade will remain in force as long as price remains above the London session low of A$1.2660.
This leaves me long EUR and NZD, short AUD and USD. In essence the NZD and AUD exposure somewhat cancels each other out, which implicitly means I'm long EURUSD. I like these trades as long as EURUSD respects $1.3280.
--- Written by David Rodríguez, Quantitative Strategist for DailyFX.com
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