Trade of the Day: Buying GBPJPY For Symmetry Swing

Trade of the Day: Buying GBPJPY For Symmetry Swing

Trade of the Day: Data from the Office for National Statistics showed that UK trade deficits narrowed to £9.92 billion in Dec, dragged by quicker drop in imports. In 2015, trade deficits widened by £0.3 billion to £ 34.7 billion due to decline in exports amid a strong sterling and weakness in external demand. BoE Deputy Governor Cunliffe warned that the BoE could increase rates if credit growth continued to accelerate. Even the dip in the 10Y JGB below 0% has failed to deter inflows from both overseas and domestic investors. Instead, continued risk aversion on concerns about global growth and the health of the global banking system spurred safe haven inflows, underpinned by its persistent surpluses in its current account

Trade Idea: I will set longs back through yesterdays highs looking for a repetition of the price action we witnessed post the dramatic declines of late last summer. The short trade is likely becoming crowded, any verbal jaw-boning from Japanese officials will likely see a short squeeze at a minimum. My stops on the long entry will be below today’s lows targeting 175

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