Trade ideas thread – European session 24 September 2021

Daily thread to exchange ideas and to share your thoughts

A typically key driver of the market has finally come back to life after a more than two-month hiatus, as Treasury yields seal a technical break higher in trading yesterday.

That to me, is a key factor to be mindful about, and tees up a potentially strong conviction for yen pairs to push higher from current levels.

Of note, GBP/JPY has the makings of pushing towards 152.00 and testing its 100-day moving average at 152.66 given the more hawkish BOE yesterday.

CAD/JPY’s rise back from the dead (again) is also one to watch as buyers eye the 3 September high at 87.89, in potentially breaking the recent downside cycle.

And the more obvious one is USD/JPY as the pair hits 110.50 today and looks poised to retest key resistance around 110.60-80 next.

That said, higher yields may eventually weigh on equities sentiment so that sort of knocks out some of the tailwind for yen pairs – especially if stocks sell off heavily.

Besides this, oil is still keeping poised to retest its 30 July high @ $74.21 and I’d still argue that bullish prospects should dominate ahead of winter.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.

Articles You May Like

Texas to probe FTX endorsements by Tom Brady, Stephen Curry and other celebs
UAE’s ADNOC to cut 5% of Dec crude volumes to term-buyers in Asia – sources
I’m a Millionaire Trader – Here’s My Simple Strategy.
Silver Price Analysis: XAG/USD limited while under $21.50, upside bias above $20.85
Next week’s economic events and releases highlighted by US jobs on Friday

Leave a Reply

Your email address will not be published. Required fields are marked *