Trading Plan [text] – Tues 21st May 2024: JPY remains too weak for BoJ

Mark NugentDaily Alert, May 2024

Trading Plan – Tues 21st May 2024: JPY remains too weak for BoJ

Good morning.

This week’s content will be text-based. I’ll be back to video next week, I promise.

Yesterday was quiet with the major economies of Europe and Canada on holiday.

The highlights of this week are Thursday’s PMI readings in the US, Germany, eurozone and the UK.

Right now, US equities and the FTSE100 are going sideways at all-time highs. The Euro50 and Japan225 are sitting just below their all-time highs.

WTI has been going sideways for two weeks, just below USD80/bbl. GOLD is pushing up through USD2400/oz.

Looking at currencies, the USD, EUR and GBP are up so far on the week. The JPY continues to fall. The USDJPY is still well above the Bank of Japan’s preferred level (showing JPY weakness). There was a clear buy signal last Thursday after a move down on the previous day followed Thursday’s small bullish candle with a large wick to the downside.

In terms of trading ideas, I am interested in:

1. A weak JPY. I will look to go long on any move down in USDJPY.
2. Strong US equities. I’d like to see a pullback before entering long.
3. Weak EUR and GBP against a strong USD. The fact is that the EUR and GBP have not been reliably weak so I want to see that before seriously considering these options.

I will be back on Thursday where we will review what happened with all that PMI data.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE