Thank you Mr Hamada (July 16)

I would like to thank Mr. Koichi Hamada. Mr Hamada is a professor emeritus in Yale University and last Sunday he had a meeting with another University professor, Mr Ben Bernanke. After this meeting the Japanese Yen decided to get weaker by 415 pips in just two days. I knew who Mr Bernanke is and learned that Mr Hamada apart from University professor, is also an adviser to Mr Abe. Most probably it is just my wild imagination that a meeting of two professors can affect the course of a currency but you never know.
​During this week, only two currencies moved, the JPY got weaker and the GBP stronger. In both cases it could just be profit taking from previous moves.
The JPY closed with a loss of 415 pips and the GBP with a gain of 386. The NZD also lost 280 pips but I do not know the reason since it is a currency that I do not trade and I am simply using it for my statistic currency calculations.
The Eur/Usd remained in a tight range and should be traded short from resistance at 1,12.
The Gbp/Usd closed the week with a profit of 233 pips but with an upper wick of 300 pips indicating weakness. A nice candidate for a short.
The Aud/Usd closed with a insignificant profit of 13 pips but gave me the opportunity to close my long with a nice profit. I remain bullish for the pair and wait for the proper setup to go long again.
Eur/Jpy and Gbp/Jpy closed with substantial profits but with important upper wicks indicating weakness. Because the JPY up move is not over yet, it is advisable to wait before shorting the pair.
The Eur/Aud closed the week with a small loss of 44 pips. It is testing support and from a technical point of view it should bounce. Fundamentally it remains weak and it should sooner or later break support. I would only short it from a higher level.
Profits for the Gbp/Aud that also closed with an important upper wick. I called a short during the week and I expect the pair to move lower.
The Usd/Jpy closed with a profit of 422 pips and I expect it to move higher. I already have longs on the pair and will wait to close them with a profit. The pair could move and retest resistance in the vicinity of 111.
Small losses for the Usd/Cad. An increase in Oil price will move the pair lower and I will be able to close my short.A week light in news. Monday is a holiday in Japan, Wednesday employment news from GB (traders will pay attention to whatever affects the GBP), Thursday Euro cash rate and Mr Draghi holding a speech and also US Phily Fed manufacturing Index and unemployment claims.


 

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