Daily Forex Market Update: Being Short on the GBP/JPY Today
- Today John Putman added to his daily market update four charts to better demonstrate the instruments' circumstances. See and read for yourself and comment what your "short stories" are.
John Putmann II
ABOUT THE AUTHOR: John Putman II is a full-time trader and managing member at FX Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term, a third-party research provider focused on exchange rate modeling, economic complexity, genetic programming and distributive computing.
In early trading we saw the Aussie, Euro and Pound Indices all gain ground. The Kiwi weakened overall while the Swiss and Dollar remained relatively unchanged. The Pound Index is slowly approaching resistance which is a good thing as I’m on the wrong side of a GBP/JPY trade and can use all the help I can get, and the Kiwi is sitting at its macro support. These two may warrant further analysis as there may be potential setups in the underlying pairs. The balance of price action in the other exchange rates is relatively neutral.
January the 20th, 2015
In the matrix this morning, there are 16 regression signals, six of which have cyclical support, but only two aren’t suffering from counter-momentum. Those will be put aside until this afternoon and then reevaluated. Of the two that are left, GBP/USD and NZD/CAD, the latter is of more interest to me at this time. I’m currently short the GBP/JPY, and taking a beating on it, and the correlation between that and the GBP/USD is just a little too high, I’d likely end up with unintended Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term by adding it in. While the correlation between the GBP/JPY and the NZD/CAD is actually negative, getting long the NZD/CAD while short the GBP/JPY actually puts it in gear to a small degree. Difficult to squeeze out all the risk.
Pound Index
Kiwi Index
GBP/JPY
NZD/CAD
This article is part of the Forex Magnates Community project. If you wish to become a guest contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz leahg@forexmagnates.com
John Putmann II
ABOUT THE AUTHOR: John Putman II is a full-time trader and managing member at FX Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term, a third-party research provider focused on exchange rate modeling, economic complexity, genetic programming and distributive computing.
In early trading we saw the Aussie, Euro and Pound Indices all gain ground. The Kiwi weakened overall while the Swiss and Dollar remained relatively unchanged. The Pound Index is slowly approaching resistance which is a good thing as I’m on the wrong side of a GBP/JPY trade and can use all the help I can get, and the Kiwi is sitting at its macro support. These two may warrant further analysis as there may be potential setups in the underlying pairs. The balance of price action in the other exchange rates is relatively neutral.
January the 20th, 2015
In the matrix this morning, there are 16 regression signals, six of which have cyclical support, but only two aren’t suffering from counter-momentum. Those will be put aside until this afternoon and then reevaluated. Of the two that are left, GBP/USD and NZD/CAD, the latter is of more interest to me at this time. I’m currently short the GBP/JPY, and taking a beating on it, and the correlation between that and the GBP/USD is just a little too high, I’d likely end up with unintended Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term by adding it in. While the correlation between the GBP/JPY and the NZD/CAD is actually negative, getting long the NZD/CAD while short the GBP/JPY actually puts it in gear to a small degree. Difficult to squeeze out all the risk.
Pound Index
Kiwi Index
GBP/JPY
NZD/CAD
This article is part of the Forex Magnates Community project. If you wish to become a guest contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz leahg@forexmagnates.com