Boris and Kathy's FX Blog www.bktraderfx.com
10/23/2006
Today's Email Alerts:
Alert # 3 Stopped on GBP/JPY
We got stpped on GBP/JPY (-50) at 223.65 after unexpected comments by Japan's "Mr. FX" Hiroshimo Watanabe that Japan remains in deflation weighed on the yen all afternoon long.
As we noted in our initial commentary GBP/JPY tends to be a "monster" pair to trade and in retrospect on a day when the G-3 calendar is empty and trade flows are very vulnerable to idle commentary we would have been wiser to stay out of teh market altogether. Fortunately, the economic calendar picks up speed tonight with IFO and then later on FOMC announcement so we may see more promising trades in the near future. For the time being we are sidelined
Alert # 2 GBP/JPY Near Top
After yesterday's explosive rally, GBP/JPY is topping out right around its end of August highs, which is also the highest level its been since August 1998 which makes it a pretty significant level and tough resistance. GBP/JPY is a monster to trade because of the wide daily range. However, there is scope for a move down to 222.75 (First target). Catching a short entry around 223.15 would be best (current levels). This is one of our soft recommendations.
The stop would need to be around 223.65. Second target would be somewhere between 222.45-55
Alert # 1 Ouch! Kiwee goes but we are not on board
NZD/USD declined sharply in the last hour as a general wave of dollar strength ahead of the FOMC meeting tomorrow has pushed the pair to .6635. We are unfortunately out of the trade having covered for a small loss before the week-end. However, those of you still in the trade should cover 1/2 the position at market (.6642) for a 33 point gain and move your stops to breakeven targeting T2 at .6612.
With nothing on the G-3 calendar for the rest of the day we are likely to sidelined ahead of the FOMC tomorrow but stay tuned for further updates.
Alert # 3 Stopped on GBP/JPY
We got stpped on GBP/JPY (-50) at 223.65 after unexpected comments by Japan's "Mr. FX" Hiroshimo Watanabe that Japan remains in deflation weighed on the yen all afternoon long.
As we noted in our initial commentary GBP/JPY tends to be a "monster" pair to trade and in retrospect on a day when the G-3 calendar is empty and trade flows are very vulnerable to idle commentary we would have been wiser to stay out of teh market altogether. Fortunately, the economic calendar picks up speed tonight with IFO and then later on FOMC announcement so we may see more promising trades in the near future. For the time being we are sidelined
Alert # 2 GBP/JPY Near Top
After yesterday's explosive rally, GBP/JPY is topping out right around its end of August highs, which is also the highest level its been since August 1998 which makes it a pretty significant level and tough resistance. GBP/JPY is a monster to trade because of the wide daily range. However, there is scope for a move down to 222.75 (First target). Catching a short entry around 223.15 would be best (current levels). This is one of our soft recommendations.
The stop would need to be around 223.65. Second target would be somewhere between 222.45-55
Alert # 1 Ouch! Kiwee goes but we are not on board
NZD/USD declined sharply in the last hour as a general wave of dollar strength ahead of the FOMC meeting tomorrow has pushed the pair to .6635. We are unfortunately out of the trade having covered for a small loss before the week-end. However, those of you still in the trade should cover 1/2 the position at market (.6642) for a 33 point gain and move your stops to breakeven targeting T2 at .6612.
With nothing on the G-3 calendar for the rest of the day we are likely to sidelined ahead of the FOMC tomorrow but stay tuned for further updates.
posted by BKTrader # 10/23/2006 07:03:00 PM 
Archives
09/2006 10/2006 11/2006 12/2006 01/2007 02/2007 03/2007 04/2007 05/2007 06/2007 07/2007 08/2007 09/2007
