Shorted almost all JPY crosses last week
Last week, most JPY crosses were parked at critical resistance level. Shorting JPY crosses became a natural low risk selection. In The Alien Room, I shorted
- USDJPY at 113.70 and exited on break even (no gain no loss)
- EURJPY +125 pips and +30 pips (protective SL) Average 77.5pips gain
- GBPJPY reached final profit level too. Had 3 positions in this. +79 and +219 pips profit respectively. 3rd position is risk free with shifted SL
- CADJPY reached target too and closed for a profit of 84 pips
- AUDJPY this trade is slightly in the red as AUD is one of the strongest currency still
I like to illustrate using CADJPY how I traded. If you think I'm only showing winning trade, that's wrong. I announced all my wins and losses publicly. Download any of the trade diary and you could see detailed record of wins and losses. See trade performance and diary here.
Best Practice illustration - how we shorted CADJPY for 84 pips
Analysis in Big Picture
Lower timeframe entry
The Alien Gift reinforced sell level
Took profit for 84 pips
Bullish/Bearish Day Close 27 Feb/ Open 28 Feb
It doesn't mean that after a bullish or bearish close, price would immediately trade in that direction. Remember, we are trading the retracement after an expansion. So it is important to know, with these alerts, which pair we need to zoom in first.
And I see trades already popping out of these results. Will post it up in #thealienroom.
Monitor this pair if USD is to strengthen
My analysis pointed to possible short term strengthen of USD. Read this post.
If USD is to strengthen, then USDCAD Autobox plot is showing some internal strength building up. Coupled with USDCAD parked at strong support which I pointed out in The Alien Room, this is a pair that I will be monitoring, especially that Autobox day close is showing bullishness.
JPY strengthening. Indexes showing bearish close in Day chart. Gold heading up....??
Currently, there is only one open trade in The Alien Room. However, I will be putting in new trades when market provides better clues. Today, I want to bring to attention that many indexes like FTSE100, DAX100 and even Hang Seng (but US indexes had a last minute push up before close last friday) are showing bearish expansion. Is something brewing?
I present a chart in NDX Gold Bug and this will probably tickle your thoughts a little. HUI is one of the two most watched gold indices on the market. HUI is falling, but coming up are zones of support. I would assume it is supported at this moment and I'm watching it for trading opportunities into Gold.
From the trading desk of Binni Ong,
to your trading success,