Thursday, February 20, 2014

Overnight Observations

Good Morning.

The math here is pretty simple; despite a slew off economic reports from Asia to Europe coming in ugly, the market cares about one thing only right now which is not good considering the 60-70 point dislocation, but that would be $102 on the USD/JPY.

Overnight...

 5 min USD/JPY, yellow arrow is the 2 pm release of the minutes, the market didn't take them well as you can see, the red arrow is the 2:30 a.m. reversal of the USD/JPY overnight and the red trend line is $102, the maginot line all week.


 That sent ES down overnight and then recovering following the USD/JPY.

TF looks like this ...

The Index followed USD/JPY a bit better, it still doesn't look good.

NQ looks almost exactly the same.


The 1 min USD/JPY is already seeing a negative building in, the red line is $102, but the Yen and $USD are pretty much what I'm going to be watching for a lot of the day.

Both are VERY early in to a reversal divergence that would send the USD/JPY lower, I'm guessing by the afternoon.

We'll see what else is out there, but as we suspected Tuesday trade is all about the pair and more specifically $102.

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