MAJOR turning point…
This week’s Trade of the Week: Sell USDJPY
This week, I am again revisiting the short side of USDJPY. I took a break from this pair last week to focus on Facebook (more on that below), but after going nowhere for two weeks this pair is setting up nicely…
Last month, the Dollar sold off dramatically at a very important price area.
I have been watching this area for some time and there were signs that we were about to turn as I mentioned a couple of weeks ago. However, we have now convincingly closed below the recent range and broken out to the downside. With the long-term charts in mind, this move could be a key development for the Dollar and the currency market in general.
The Dollar now looks very exposed to a sizable move to the downside and possibly even to a new long-term bear market.
With that in mind, I will be looking to short the Dollar against the strongest currencies.
At this time, I like the look of the Japanese Yen the most.
I also like the Canadian Dollar, and the British Pound looks to have a lot of potential too, but for the moment at least it needs to have a breather. Markets move in waves, not straight up and down, and the Pound looks like it needs to breath out after it’s recent sharp climb before it can make another attempt for new highs.
There is a lot of money to be made once a major theme has been identified.
We can find several trades to play into that theme and start to accumulate large positions to hold for a decent length of time to profit. It appears that the Dollar weakening may be about to present us with a major opportunity.
I will be ready to take full advantage and share my thoughts and ideas with you all.
Last week, I was focussed on buying Facebook before its earnings release. We saw a 5% overnight rise in the stock when earnings were released. I really focussed on this trade last week, bought a large position (it was, after all, my trade of the week) and made a lot of money on the big overnight gap. I hope that some of you were able to profit too!
I’d love to hear about some of your experiences — please let me know.

I try to focus on longer-term trades in the Trade of the Week, so that even if you receive them after my students and perhaps don’t see the analysis immediately, you still have the opportunity to profit from the ideas I share.
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