Dull, boring and stupefying…The market is taking an extremely cautious approach and while the Dollar losses seen on Friday are still constructive the sluggishness has not really given price any open air for any corrections to be anything but shallow. Therefore, it does seem as if we need some follow-through to maintain a modicum of bearish momentum. Keep this in mind in terms of your expectations and be prepared to become more neutral should pullbacks occur it would appear to suggest the potential for a sideways consolidation in the middle of a larger sideways consolidation. That spells trouble as they tend to cause nasty whipsaws, minor breaks of highs and lows then reversal.
However, I do remain Dollar bearish.
The Aussie almost did well and should still do well but the short term is hanging in the balance. My view remains pretty much the same as the Europeans so I still feel that looking for bullish set ups is the way to go.
The JPY pairs were clearly spooked by the upper house elections yesterday. My insightful comment on that is: “ZZzzzzzzzzz.” Both USD/JPY and EUR/JPY have retained a sense of buoyancy but a fragile one I feel. We’re still riding the fine line between additional gains (although within a correction I feel) and direct losses. There’s precious little upside room for the cross while USD/JPY remain toying with the space above Friday’s high and that of the 7th July. Can it get above? Well, I can’t say it won’t but I don’t think so. I do have a specific time frame in my mind for when USD/JPY finds its low and that is close enough to mean we need some losses soon. If there is any other alternative (though I think it’s a poor alternative) then it’s a longer extended sideways move.
However, we are talking about politicians so there’s always the enjoyment of seeing them open their mouths and screwing up.
Basically, still favour the downside in both JPY pairs.
However, I do remain Dollar bearish.
The Aussie almost did well and should still do well but the short term is hanging in the balance. My view remains pretty much the same as the Europeans so I still feel that looking for bullish set ups is the way to go.
The JPY pairs were clearly spooked by the upper house elections yesterday. My insightful comment on that is: “ZZzzzzzzzzz.” Both USD/JPY and EUR/JPY have retained a sense of buoyancy but a fragile one I feel. We’re still riding the fine line between additional gains (although within a correction I feel) and direct losses. There’s precious little upside room for the cross while USD/JPY remain toying with the space above Friday’s high and that of the 7th July. Can it get above? Well, I can’t say it won’t but I don’t think so. I do have a specific time frame in my mind for when USD/JPY finds its low and that is close enough to mean we need some losses soon. If there is any other alternative (though I think it’s a poor alternative) then it’s a longer extended sideways move.
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However, we are talking about politicians so there’s always the enjoyment of seeing them open their mouths and screwing up.
Basically, still favour the downside in both JPY pairs.
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