ASIA Lifts #USDJPY #USDCHF #DXY Respectively

Asian FX session Drives USDJPY @110.09 with three (3) consecutive weeks of gains from 105.55 low as basis of the focal turning point. While USDCHF marks higher @0.9880 from a 0.9663 low & pulls back above 0.9700 benchmark support / resistance. This has supported the lift of the USD Index above the crucial 95.05/10 levels pointed out earlier in our previous analysis that the market is 'Momentum driven while building volume trades to justify our Market call. Likewise, when such momentum is sustained towards the European and US trading sessions, we do expect a continuing rally to be made with intensity covering the USD above these levels while session pullbacks would not again be discounted due to the early hours heading towards the two major markets still needs to be priced into the market..

ASIA Lifts #USDJPY #USDCHF #DXY Respectively

CCY Corner: #USDJPY Rightful Trading Approach Varies

What has been overlooked in a traditional training school would be more valuable than ever. Markets recognizes itself and does not necessarily presents its true colors. Only one from two choices. Its 'how to have a keen eye to identify price action, patterns & market behavior along with the right type of market conditions are the key elements of a 'rightful trading approach'. 

USDJPY FOCAL TURNING POINT

CCY Corner: #USD Still Key Driving Force in Market Volatility

US DOLLAR INDEX - DXY

With the most recent developments surrounding market price action in the CCY market, the prevailing catalyst over and above significant event risk has been the remarkable price movement of the USD as measured by the US Dollar Index - DXY marking a new low @91.90 on just the first week of trading for May 2016.

The relative market influence on increasing 'Volatility" have spread extremely well as turning points on price reversal, including follow through actions among certain currency pairs that have contributed a wider trading range, price target extensions / expansion from a technical chart perspective.

CCY Corner: #USD Still Key Driving Force in Market Volatility

Yen Strength VALIDATES USD/PHP Weakness in VALUE

Follow Up Analysis from 4.18-19 Market Call

Just as the Yen continues its strengthen against the USD, the weakness of the USD translated into the weakness of the Philippine Peso have given way for the exchange rate to accelerate higher with the JPYPHP now @44.00 & above. And aiming @45.00 or better for as long as the JPY gains value continues its course.

In addition the PHP weakness spilled-over the PSE Index where equities have moved lower which had difficulty pushing above the 7500 benchmark reference and currently below the 7000 level. Timing is an important factor which has a basis of reverence and not a speculative process 

From our April 18-19,  2016 call for OFWs strategy to carefully watch the prices @40.50 base price point to 42.00 and has now added to the value of PHP exchange rate. When investors do the math, for every 10k JP Yen equates to 4,050 PHP multiply as long as the Yen's strength continues.

Thus, the practical and effective process of saving while value investing over a time period makes more sense for OFW. The same methods applied with currency conversion for now with the value increase of the Canadian Dollar, EURO, Sterling Pound and the AUSSIE Dollar versus the Philippine Peso just to name a few.

NOTE: An advantage for Foreign companies that involves International Foreign Direct Investments is a huge contribution to the Philippine economy that creates jobs, and other business opportunities.

#BOJ Send #USDJPY Back Lower in Asia Session

Speculative trades throws-in the towel as BOJ opts out (for now) on adding further stimulus package sending a rapid decline with the USDJPY back towards the 108.74 low from the same rapid action marking a high @111.76. While late traders react on a pullback from early session lows. This is the first (1st) signal & a confirmation for a follow through is in the making. Of course, only when after the fact will the price and market call can be validated. 

Watching price action today heading towards Friday's closing week price levels. Follow us on our next topic in choosing the best Cross Rates

@TheCCYCorner by Megatrade101.com

Comparative Analysis & Insight #USD Index #USDJPY

Sequence Analysis Supporting MegaTrade101 Market Call on USD/JPY dated April 11, 2016
The Price Action and Market Behavior seen from the USD decline towards the 93.62 (4.11.16) basis point was a similar movement and market behavior compared with the EURO. This was when the ECB announced a triple rate cut which saw the EURUSD moved lower @1.0820 and recovered with a strong pullback from the low while still currently @1.1218 on the way lower.

The similar move for the USDJPY registered a low @107.63/65 twice marked on their daily session. And the subsequent turn-around as the volumes from liquidation (Lower Open Interest on Futures-COT Report) was evidenced with the price reaction. This strategy was a sequence trade from a Short-USDJPY & USD Index cross traded with the correlation of the AUDUSD position trade taken previously.

A close monitoring / following of our market view analysis and written article information before and post market events for the past liner cycle period covering major price action would help viewers be able to follow how MegaTrade101 trading approach are done and executed in certain conditions & during exceptionally volatile market.

Comparative Analysis & Insight USD Index & USDJPY

CCY Corner: Validating #USDJPY #CABLE Market & Price Call

USDJPY AS OF 4.11.16

The noticeable market behavior on the first week of the new month of April were well noted as new highs and lows were established thus providing the first signal what the new trading month would look like. To 'weather the storm of Price Volatility', alternating price movements from a consolidation which at times seem to show that uncertainty in market direction still prevails until such time a price break occurs unexpectedly.

And this typical behavior did occur with the USDJPY posting a new low where the Yen gained strength in a rapid fashion that registered @107.68 compared with its initial price low @110.65 at the end of the first week of ending April 01, 2016. Since the USDJPY @110.65 is also in line with the 94.30 registered low of the DXY, this aligned price movement was considered to be the first signal that would bring a probable follow through at the beginning of the new trading month of April.

LINK: CCY Corner: Validating #USDJPY #CABLE Market & Price Call

Revisitng: A Matter of Perspective Analysis ll

Here are three (3) correlated market information that may be quite useful to go back through as a matter of market perspective that can best serve as a reference. The market's ability to move counter-trend market reports is respected similar to the price action that transpired with the Euro that gained its strength coming well from market sentiments while pushing prices above the 1.1340 last week.

However, note that prices came from a double low @1.0822 post ECB and made a crucial turn to its current price @1.1265 close for the week ending 3.18.2016. The higher low marked @1.1057 was way even lower than the opening price for the week but was still able to hurdle the price that led to an increase in volume that also gave fresh incentives for prices to retest nearest to the resistance level of 1.1380 which also serves as the 1st line of defense.

For as long as the USD - DXY stays below the 95.05 mark; the relative price action of the European majors is well on its way higher; unless an unexpected report would say otherwise.

With that said, the USD already had spilled its sentiments on the USDJPY nearest to the 110.55 by making a low @110.65 which is just about the same price spread that it already did. These levels are bound to take a price reversal not necessarily a trend reversal as newer lows and highs needs to be established. And this goes well with the DOW and the SP500 with the exception of the JPN225 which is a clear downward trajectory for now.

These topics are quite useful to apply as it does relate how market would react post a major move and market volatility. Not necessarily in their respective order.

How to measure a price change on a rebound or decline

A Matter of Perspective ll

Aftermath of a Market Volatility

INSIGHT: FX & Stock Indices Price Action

Marked Highs & Lows: The market's ability to set newer highs and lows is widely credited to the momentum and volatility of price action from a broad base combination of the US Dollar, the DOW JONES, SP500 & the JP NIKKEI 225 index and their respective correlated markets with OIL

The sequence of price movements on the USD; as defined with its trade weighted average DXY, which marked a new low @95.65 setting the market pace for the currency market to do the same. This already stated with the new low on the USDJPY @114.20. These initial moves were the first signal that a new cycle of alternating moves were in the making which we have anticipated in our most recent report. Let us define the series of price movement in their order and price sequence reaction.

INSIGHT: FX & Stock Indices Price Action

New Price Cycle Starts on CCY & STOCKS

USDJPY 

PRICE ALERT: 

• USDJPY @110.95 - 2nd NEW LOW European Trading Session Update as of Feb 11, 2016
• USDJPY @114.44 - 1st NEW LOW Asian Trading Session Update as of Feb 09, 2016

Based on our most recent expectation the market is geared in setting-up "New Highs & Lows" which have started as early as today trading in the US trading session. Admittedly, the market has gotten ahead as of today's price action highs & Lows. How short-lived a price recovery was that! 

Nevertheless, after the DXY @96.25 low; an initial contrary price move by the USDJPY that marked a new price low @115.17 - extension - (Higher Value) as of writing. This also reflected the flow of sentiments where a spill-over from the stock market's decline have also shown investors flight to safe-haven currency pairs. Related info on DXY Price Alignment

With similar bets shifting towards the precious metals on GOLD near @1200.00 New High Levels away from a renewed price decline on Oil. And other sectors from Technology, Financials other than Energy have been the main drivers of the decline: while the market awaits FED chair Janet Yellen's testimony for the week.

Its been quite a busy session again from the closing of the European session, as price action on the EURGBP cross has set its 2nd New High @0.7760 which may find some minor resistance while CABLE gathers momentum for the next leg lower as we have anticipated. However, these three currency pairs have also been the main focus as the market have been active since the opening bell. For now this is what we meant as the market has gotten ahead this time around.
       

EURJPY Cross VALIDATED as of 01.29.16 Asia Session

Japan CPI data provided speculation on BOJ easing which pushed USDJPY high @121.40 level, and spilled-over to the EURJPY Cross rate @132.26 high in the Asian trading session. This has led to the BOJ rate cut into a negative 0.1%. 

This VALIDATES @megatrade101 MARKET CALL on EURJPY Cross rate with a trade position dated the 25th of January 2016, @128.30.  With the price break above the 118.80 equivalent USDJPY after the release of the CPI data and the sustaining levels with the EURUSD above the 1.0880 -1.0910 fueled by weight on more speculative actions by trades for more probable BOJ easing which added to the rapid price swing and pullback during the Asian session. Closing price levels for the week is closely monitored. As these price movements is a glimpse of the market's direction that would set the pace at the start of the new month's activity.

Reference to Market Call: EURJPY Comparative Analysis dated 01.25.16

CCY Corner: EURJPY CROSS RATE Comparative Analysis

With that out of the way, the EURJPY cross correlated to the Japanese Yen's price movement have likewise shown some relative support zone @125.85 low and a price recovery currently @128.47 marks a correlated Yen weakness compared with the USD maintaining strength well supported not only by its price, but by some encouraging figures from housing prices data and US Consumer Confidence #'s. The USD direction would have some momentum and increase volatility by the next GDP data for the week.

The price action pullback of the EURJPY from its 125.80 low can no be a confirmation of its benchmark support. Quite a significant move and a divergent comparison with the EURO is well justified. Marking the low price of the EURUSD @1.0580 as the first bottom price based on the current chart. However, the current configuration of the EURUSD well within a descending channel from it high @1.1048 price zone was a result of the ECB disappointing the market of its inaction on rates.

CCY Corner: EURJPY Cross Rate

Market Insight: DXY GBP EUR Cross Rates - JPY & JPN225

The start of Asian session for stocks didn't fair out well as the JPN225 decline to its low @18430 as of this writing. Indirectly due to investors staying away from risky assets and relative to the Middle-East tensions between Saudi Arabia and Iran. The contagion in Asia is wide spread as the weak economic data from China led a similar drop in the HSI. 

The market situation have initially lifted the USD trade weighted index at the Asian session, in contrast with the USDJPY which gained strength @119.65. For a complete analysis & insight, click on the link below.
Market Insight: DXY GBP EUR Cross Rates - JPY & JPN225 

The Business of 'Making the Right Trading Decisions' for 2016 and Beyond!
"A similar market situation can be made or created within the new trading year and  an overlaying new contract month which at most times can define or establish a new "high or low" simply based on the weeks and months traded.".
by Alexander dated January 01, 2016

BOJ Surprise Move Ripples Across the Board

It was the BOJ move of buying additional ETFs to expand their asset purchases that moved the Nikkei 225 Average towards the 19900 & for the USDJPY @123.55 before retreating quickly lower. A whipsaw where volatility on the last trading day for the week was a total surprise for the market. This move has affected all cross rates related to the Japanese Yen which saw traders frantic on what the next price swing would be made in the US market.

The Bank of Japan's massive stimulus target still remains, while expanding the types of assets it purchases to increase the probability that they meet their target objectives. Utilizing the ETFs is becoming more sophisticated for BOJ in companies that are investing in physical and human capital is an amazing new approach for us to hear from the BOJ out of the traditional forms. Besides, buying another ¥300 billion ($2.45 billion) of exchange-traded equity funds, in addition to the ¥3 trillion in ETFs it has purchased since late 2014 is really a surprise for the market.

USDJPY OVERLAY JPN225 ON THE BOJ SURPRISE MOVE

TRADE SEQUENCE ll: SCALING UP Positions

"Ride a Continuing Trend"

The following series of trades are best defined with almost all respective positions on the AUDUSD, AUDJPY SGDJPY are in place; the next objective is to protect those gains by watching the reports real well this week.

Any sudden resurgence of the USD index higher above the 100.39 previous 1st high and 100.31 20d high would result to a pullback lower on the AUD and the SGD respectively. However, for as long as the overall secular market sentiments remain in favor of the USD, the degree of price recovery may well be in check. The Asian currency choice was pre-determined as the best probable choice compared to the European majors underlying negative / bearish sentiments. 

TRADE SEQUENCE ll: SCALING UP Positions

Trade Sequence Follows Trend On CABLE & AUSSIE

AUDUSD

UPDATE: Trade Sequence have Just been Validated As of Nov. 20  24, 2015 US Trading session EST

Anticipating a probable corrective move for the USD are in line with the daily session lows in stocks; the momentum has dwindled as investors digest some relatively bearish reports both in the US retail and ECB Mario Draghi's comments.

The spill over effects from the EURO dented Cable's gain which signaled a probable down turn for the European majors. The resiliency of the USDJPY was still holding above its bench mark levels since the BOJ statements were overshadowed with how investors viewed stocks including the Asian NIKKEI 225 Average staying above the 19850 levels.

AUDUSD Price Recovery & CABLE's Decline
Brief Insight: Behind the Strategy ll 

Trade Sequence Follows Trend On CABLE & AUSSIE

Trade Summary On Cross Rates 2

Net Percentage Trading can only be as effective when choosing the right combination of correlated currency pairs that are timely executed  in the market. While treating a loss as a cushion against unexpected adverse price fluctuations.

MegaTrade101.com Video Support Trade Summary On Cross Rates

USDJPY,  AUDJPY, GBPJPY, SGDJPY, CABLE
Focus on the Japanese Yen related cross rates with an arbitrary hedging strategy on Cable against adverse price fluctuation

USD Rally Validates Cross Trade Strategy

The NFP Report have been the key driver in pushing the USD Index to higher territory while registering 99.34 basis point to this writing. A surge in the Jobs #'s with 271000 actual jobs growth and a 5% on unemployment figure surely gave USD bulls a run for the bank.

Please visit our previous sequence of market analysis that led to the best trade results for the week. Although, somehow this figure have slightly dampened stock prices, as this would be an encouraging data for the FED to justify an rate hike this December and start its normalization process.
The Cross trade strategy applied might be a little more expensive to maintain before the risk report, but the end result have been favorable since the data was nothing compared to market expectations. Click the link for details

 #‎USD_Validates_Cross_Trade‬:‪#‎USDJPY‬.‪#‎SGDJPY‬ JOBs 271K

USD Correction Across the Market!

In a few hours the end of the month's trading activity has now been limited to the "Corrective Mode" which we have referred to in our recent market view particularly for the USD Index (DXY). As of this writing @96.68 for the DXY, @120.43 for USDJPY, and 1.1066 for the Euro seems to be just a mild corrective move nearing the closing. Boring as it may seem, but sure does gives us some space to kick-back and wait for the next round of news.

The same can be said across the major stock indices to no surprise. Though, the major trend is still intact with a healthy sign for such price pullback on the DJIA and the SP500. We do not expect to have any real action except at the weeks moving forward. For as long as the stock indices stands firm in these levels the contrary attempts to push them lower are slowly diminishing until such time a new round of fresh incentives would present itself before any price action continues.

Have a great weekend! Cheers!

In Focus: JPN225 Ave. & USDJPY

Unsurprisingly the major market's has been steadily digesting the recent moves the past week and entered in a corrective move as expected nearing the closing week of the month. Indeed, for October this year, had been proven to be a roller coaster ride that would end at a higher note for the USD and the major stock indices. And traders are now awaiting for the FOMC data to be release keeping a tight lid on price acceleration from the past week. 

JPN225 Average

Likewise the Japanese Nikkei 225 is not an exemption to this rule.  While making a dramatic price recovery seen @19182 high and is currently working back lower @18779 to this writing. A correlated move with the USDJPY regaining lost ground moving into the 121.47 high and trading at its current price level @120.82. The price alignment on both the YEN versus the USD and the JPN225 average marking their respective objectives reflects  the how markets are well guided by certain benchmarks that once aligned expect a temporary price pause and a steady flow of normality back into the market place. This is over and above the recent news of a rate cut in China which was over-shadowed by investors who have been more keen on the upcoming FOMC report and recent rally on the global markets.

On a Technical Angle:

Tools of the Trade applied is a complex cross section of overlay analysis that were significant in providing directional price swings even before they transpired. JPN225 have found a temporary resistance @19182 high and is on a corrective mode which may continue towards the closing of the month. It has fulfilled its initial price objective on the high. Note that price penetration on a trend would have to retreat back from its original levels. As the current levels has been a good 50% retracement of the previous HI/LO decline which started in August extending towards late September 2015. Click here to continue USDJPY Update