Trading Plan – Tuesday 7th May 2024: JPY weakens after BoJ interventions

Mark NugentMay 2024, Trading Plan

Trading Plan – Tuesday 7th May 2024: JPY weakens after BoJ interventions

Good afternoon.

It’s a sparse calendar in front of us this week.

Early this morning, the Reserve Bank of Australia held rates at 4.35% as expected. They played down any talk of a rate hike. The AUD fell.

The highlight of the week is the rate and statement from the Bank of England. Rates are expected to be held at 5.25%. As usual, the focus will be on written statements and the press conference.

I went long on USDJPY last night. After what may be two interventions from the Bank of Japan last week, strengthening the Yen (and lowering the price of USDJPY), I felt a rebound was likely. The USDJPY had moved down to support and there was clear buying pressure (of USDJPY, not JPY) on Friday’s daily candle. A nice move up (JPY weakening) yesterday gave the perfect long setup. I could not resist. So far, the trade is in the (unrealised) money.

As always, I go through my trading ideas for the week in the video.

I will be back on Thursday.

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