JPY Trading Outlook (26-03-2013)

INTRADAY CONCLUSION: Prices have stalled near previous highs at 1.0480 and this leaves me more inclined to be short near current levels at 1.0460. Keep intraday short-stops tight above yesterday’s highs and be happy with 70/80 pip profits as support will be solid at 1.0350/70. Bulls should be patient and wait for intraday dips. Much will depend on what happens in the crosses so keep a sharp eye on the big levels there.

TRADE OF THE DAY: Yesterday’s idea was almost perfect, picking up the 130 pip fall in USD/JPY, and I still think there are more Yen gains ahead. With the AUD/USD starting to look a bit overbought, today might be the day to position ourselves for a bearish break in AUD/JPY. Sell intraday rallies to 98.90 with stop above 99.50 looking for 96.00.

Good luck out there.