Daily Alert and Live Q&A – Wednesday 19th February 2020: Sentiment is mixed, risk-on in parts; JPY bearish

Mark Nugent Daily Alert, Feb 2020, Q&A Webinar

Daily Alert and Live Q&A – Wednesday 19th February 2020: Sentiment is mixed, risk-on in parts; JPY bearish

Last night, I look closely at the D1 candle for both Japan225 and the JPY and, despite the sentiment being risk-off at that time, I see a reversal in sentiment on the lower timeframes. This was expected as the catalyst for the risk-off sentiment, the Apple profit warning, is a kind of news event whose impact on market sentiment does not endure. I go long on Japan225 with a pending order. It was triggered early today and so far is doing well.

Risk sentiment is indecisive as of Wednesday evening UK time but not all the indicators are showing this. Equities are up and the JPY is down, showing risk-on sentiment. We discuss how to trade the weak JPY. It is important to consider our trading strategy in this instance in the light of today’s huge JPY move. The size of this move increases the risk the move is over. There is a way to minimise this risk, with the added benefit of protecting ourselves from the dreaded fear-of-missing-out.

VIP Club members can watch the video HERE