1858.65 is the new high of all time as the fairy tale continues. Up 21 points for the day I’m wary that we may start to see the end of this particular rally and possibly a bout of profit taking kicking in towards the end of the US session.
The break is very impressive but I’m revising my long entry now considering the move today. If we don’t break above 1860 then I’ll be looking for a dip to the broken area at 1851 to buy into. If we do break 1860 then I’ll take a long but in reduced size.
USD/JPY has fallen by the wayside and it’s a pattern I’ve noticed over quite a few trading sessions. While we’re in the wedge range the pair can be pulled about by what happens in stocks and bonds but it comes to a point where it suddenly ignores those factors. To me that says that it’s short term traders playing about in the middle and they are quick to scarper as soon as they hit decent sized buying and selling at either end.
We’re holding below the to of the wedge even as stocks and bonds remain well bid and we can’t even manage a push higher with Nikkei futures sitting 170 ticks up.
The wait for the break continues.
