Woohoo! Finally some strong upside momentum for Guppy! Because of that, I’m adjusting my stop higher in order to lock in a few gains.
Long GBP/JPY Trade
Price bounced off the area of interest I had my one good eye locked on since last month, but it stalled around the 147.50-149.00 levels for a few good weeks before finally settling on the northbound route.
I have the Japanese elections over the weekend to thank for the gap higher and sustained upside momentum so far this week as PM Abe’s victory upped the likelihood of another tax hike and a continuation of the BOJ’s easy monetary policy.
After that, sterling also got a big boost from stronger than expected U.K. GDP for Q3 at 0.4% versus the previous 0.3% growth figure. This signals that the economy is able to keep calm and carry on throughout Brexit uncertainties.
With that, I think it’s time for me to adjust my stop higher for a risk-free trade and some change. I was able to go long with my buy stop order at 149.35 with an initial stop below 147.00, so I’m now rolling it up to 149.50.
Only the CBI realized sales index is on the docket for the U.K. for the rest of the week while Japan still has its national core CPI and Tokyo core CPI on Friday. Besides, the yen might also take its cues from global bond yields and dollar demand, particularly when the U.S. advanced GDP reading is released.
I’m also open to the idea of closing early at market on any signs of risk aversion returning, possibly on North Korea tensions or another round of Brexit jitters. What do you guys think?
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