The US markets were battered today as investors weary about bank strength sold the Dow down 187.27 points and the S&P down 22.72 points, below the important 1000 level. This risk aversion saw the JPY continue its onslaught against virtually all other currencies and the USD making up serious ground against the EUR and GBP and especially against commodity-driven currencies such as the AUD.
This flight to safey is what we have anticipated for the past weeks, but it also has driven volatiltiy up and reduced optimal entry points. We will continue to stay bearish equity markets, but we will cautiously look to buy on retracements and not breaks.
Daily Currency Pair Analysis
GBPJPY: The pair has broken support at 150, but we will only look to go short on a retracement to at least 151.50.
Potential Trade: Short GBPJPY
Optimal Entry: 151.50
Potential Stop Loss: 152.99
Potential Take Profit: 147.50
