From the FXWW Chatroom – Long AUD/JPY: The PCR model has flagged AUD/JPY higher targeting 80.54 over the next month.
We enter a long AUD/JPY trade at 78.37, with target at 80.54 and stop at 76.20. The magnitude of the 1M z-score exceeds the threshold of 0.5, and our back test results were favourable, generating a likelihood of convergence of 82%.
Short USD/SEK: The high frequency model is bearish USD/SEK targeting the 8.9480 level over the
coming weeks. Likelihood of convergence to target is flagged at 64%. In our blotter, we exited our long USD/SEK position entered on December 17 for a loss of 0.33%.
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