Weekend commentary – USDCHF and USDJPY

Last week we have seen a nice roller coaster in EURUSD where the pair gaped down on Sunday opening and was flushed towards 3829. Unfortunately I was not working so few trades missed there. Anyway, on Thursday the GAP was finally filled and 200SMA paused the chart to carry on any higher above  4280. On Friday I decided to step in and be a part of this roller coaster. I went IN – SHORT at 4138 (with objective beeing around 4000) after the point of entry was more clarified. My stop was just above 4180 which proved to be a good level (almost got hit when the price moved just 2pips from my SL). After I survived this move against me I knew that if the 4100 level would hold again I am ready to pack my pips and run away. As it turned out the level really held well so I decided to leave the scene of the crime with +10pips exiting at 4128. At the end of the day it turned out to be a good decision since my SL would be hit now for real. Overall, good trade.

Looking ahead I can see two possible opportunities. USDCHF and USDJPY. Even I do not like trading USDJPY pair and I think my last trade there was somewhere around March I like the current price action. With the 7950's holding the pair below this critical level I would like to see more under this level. If Monday proves that the 50's are strong enough I might take a part in this play with entry below 79. Monday will show.

The other pair is USDCHF. I think the other symmetrical leg is over and the pair is setting up a for a range play. At the moment I am open to both sides but I feel I am biased 51%  for the UPSIDE. Again, this move is oversold for the LOOONG time and it can carry on like that as long as it wants. So let's see on Monday if some profit-taking is going to happened and the pair moves higher. Take it easy and have a great trading week.