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.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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