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Archive for the ‘G7’ Category

I’m going to make this real easy: forget the G7 meeting and brace yourselves, it’s all about what U.S. stocks started on Friday (well, days before that but things really heated up Friday).

But in case you’re still worried, here’s what happened over the weekend when financial officials for the G7 nations met:

 

  • China was put on warning by the group to shift gears and get the Yuan worth more
  • The group said its economies are healthy like bull (this doesn’t mean that prices may not be higher than this warrants for a currency or stocks, though)
  • Concern for USD devaluation was reiterated after the meeting, and it was noted that a strong dollar is “in everybody’s best interest”.
  • They reminded investors to be careful of “one way bets”.

They did not get into pressuring the euro down or the buck up. This is disappointing to traders wanting a pause in some of the trends happening. But it all comes back to a moot point with the bigger fish to fry: stocks led weakness …

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I have to repeat: there are much better, profitable carry trades to be concerned with right now than this pair.

But, I see what 1/2 the net surfs in searching for, so feel obliged to give an update on the GBP/JPY. I swear I know the pair like an old girlfriend.

Be aware that it is pulling back, which is whoopety-doo stuff at this point because it is still officially uptrending on the daily chart. It’s making higher highs and lows still, and is now pulled back to the 30 day MA (often used to gage the intermediate trend.)

Right now there is a lack of positive momentum so don’t think of re-buying until that shows up on the scene. And let’s be aware of the downside: I threw some fib fans up which match my support lines to a “T”. I’ve highlighted (nice little green bubbles) possible duke-it-out spots. If it breaks below each it will look progressively bearish.

Notice we just failed to clear the 200 day MA (thick, light red line, defining the long term trend) and with the G7 coming up imminently anything can happen. More on that later.

gbpjpy.jpg

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