USD/JPY Can Break 100 in S&P 500 Wake but EUR/USD Will Struggle
The combination of April's NFPs and recent central bank accommodation (Fed and ECB) generated enough friction to drive the S&P 500 to record highs. However, the fundamentals behind this positive, sentiment move only seem to have diverged even further. In the weekend video, we discuss how positioning and fundamentals can diverge. We also cover the range of scenarios for risk trends and the trades that are best positioned to take advantage - from a USDJPY break above 100 for a sustained risk bid to EURJPY for any near-term reversals.
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.