We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • Silver and Gold Prices Ripe for Retreat Ahead #FOMC Outlook? https://www.dailyfx.com/forex/market_alert/2020/01/28/Silver-and-Gold-Prices-Ripe-for-Retreat-Ahead-FOMC-Outlook.html
  • Join @ddubrovskyFX 's #webinar at 7:15 PM ET/12:15 AM GMT for live data coverage of Australian CPI release. Register here: https://t.co/CHx8GyTYZh https://t.co/B62jye5Avo
  • The $AUDJPY IG Client Sentiment outlook is bearish ahead of the Australian CPI report as prices paused their descent on key support (73.35 - 73.58). A push through this area opens the door to reversing the medium-term uptrend #AUD #JPY #Yen - https://www.dailyfx.com/sentiment-report?CHID=9&QPID=917702 https://t.co/t0DIlZTxQA
  • $GBPUSD Daily Pivot Points: S3: 1.2853 S2: 1.2937 S1: 1.2982 R1: 1.3066 R2: 1.3105 R3: 1.3189 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $NZD may slip further against the US Dollar in the longer-term, but nears oversold territory at present. Get your market update from @PeterHanksFX here: https://t.co/MAIHX5uBla https://t.co/hJVZgDjmrH
  • New Zealand Finance Minister Robertson: - Investment plan will strengthen economy and supply jobs - Transportation projects to see 1k jobs added for first year $NZDUSD
  • ❗Heads Up Traders ❗ I will be covering the Australian CPI report later today starting at 00:15 GMT on Wednesday (in about 2 hours). Will be discussing the outlook for #AUD. Signup below! $AUDUSD $AUDJPY $AUDNZD $AUDCAD - https://t.co/tvAORI7bZf
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.29% 🇪🇺EUR: 0.03% 🇦🇺AUD: 0.03% 🇬🇧GBP: -0.23% 🇯🇵JPY: -0.23% 🇨🇭CHF: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kx7ctSpXTf
  • It has been months since I updated this, but here is NYSE broker-level leverage (debt to cash balance) overlaid with the $SPX: https://t.co/Yv42OMEScH
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.73% Gold: -0.90% Silver: -3.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/EgueCnq9A8
Long USD/JPY, Long GBP/USD

Long USD/JPY, Long GBP/USD

2017-07-13 11:55:00
James Stanley, Currency Strategist
Share:

- For trading ideas, please check out our Trading Guides. And if you’re looking for something more interactive in nature, please check out our DailyFX Live webinars.

To receive James Stanley’s Analysis directly via email, please sign up here.

This setup looks to take advantage of US Dollar volatility as we head into the end of the week.

I’ve recently caught my final limit in my last USD/JPY setup from the previous Analyst Pick. In that one, I had paired up long EUR/USD with long USD/JPY in the effort of hedging around the U.S. Dollar ahead of an expected interest rate hike from the Federal Reserve. The long EUR/USD piece was stopped out at break-even the morning of the rate hike, while the USD/JPY part of the setup hit its final limit at 113.25. (Another long EUR/USD setup was enacted last week, and remains active with one target remaining).

I had taken a GBP/USD setup earlier in the week and ate a stop, and at this point I believe that I was simply too early on the continuation trade. Since then, we’ve seen a return of bullish price action in Cable as the pair has broken-above a bull flag formation, (discussed in our GBP/USD Technical article earlier in the morning); so I will use this pair as my weak-USD leg for this USD-hedge. The long-USD portion will be in USD/JPY, as the pair appears to be in the process of working on a ‘higher-low’.

We still have considerable headline risk with day two of Fed Chair Janet Yellen’s Congressional testimony, so stops will be widened out to give each of these trades some room to work. This means position sizes will be lowered accordingly to compensate for wider stops.

Long USD/JPY at Market

Stops below 111.70

Break-even stop move at 114.00

Target 1: 114.50

Target 2: 115.50

Target 3: 117.00

Long USD/JPY, Long GBP/USD

Chart prepared by James Stanley

Long GBP/USD at Market

Stops below 1.2800

Break-even stop move at 1.3000

Target 1: 1.3100

Target 2: 1.3250

Long USD/JPY, Long GBP/USD

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.