STAM STRATEGY – JUN 27

The AUD momentum is turning bullish across the board. The JPY is strengthening across the board, and has cross the 89MA for most pairs yesterday. Additionally the USD has strengthened on the daily matrix. GBP has fallen down considerably on the daily, and to a lesser extent, EUR has also weakened.

The strong pairs on the daily are now JPY and CHF and the weak ones EUR and AUD.
On the weeklies EUR and USD continue as strong and AUD and JPY are weak. Thus there is a big contradiction going on between weekly timeframes and daily timeframes.

Could this be a turning point for JPY? All five JPY pairs have gone into S2S setup, implying to buy JPY.

In summary – in the next few days, keep a good eye on the JPY charts – see whether there is strong price action in favour of JPY.

No new orders into the market today.

Detailed Check on pairs that are in either S1 or S2:

Are any of the JPY charts showing retracement?
Look for retracement on USDJPY on Friday morning. But bear in mind that USD is not showing a lot of weakness across the board. However looking at the chart, it’s clear that there is quite a difference between the two currencies, because there are certainly not trending sideways.
There is some retracement on AUDJPY – but this trend has gone on for some time already – AUD is still showing extreme weakness, but has been battered for two months – so I need a big retracement before considering a trade here.
CHFJPY – I don’t like this chart – it looks too much sideways trading to me.
EURJPY – on the Weeklies EUR is still the strongest, but it has become very weak on the dailies. JPY is very weak on the weeklies and has become very strong on the dailies. So I guess I would consider a trade here if there was very good bearish PA. Nothing at the moment
Chart for GBPJPY looks very similar to that of EURJPY. But GBP is a lot weaker than EUR on the weeklies, so it would be preferable to trade this pair rather than EURJPY.

GBPCHF – not a huge gap between strength and weakness on either of these pairs. How does the chart look? Very choppy. Would prefer not to trade this pair – long tails, a lot of consolidation.
USDCHF – still rallying along – so this could be setting up for a very good retracement – wait for bearish price action.
AUDUSD – here we still need more reversal and then strong bearish PA – this pair has been trending down for a long time so we need to make sure that we are not selling at the low’s.

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