Business-Insider

Today's price action following the news from the US was good for most USD shorts but it revealed that risk is still high in currencies that are sensitive to changes in yields. The JPY and CHF are both sensitive to asset shifts from higher risk investments like stocks into safer strategies like bonds.

The bias for fast price movements in the USD/JPY and USD/CHF is set to the downside. That does not necessarily mean we should avoid trading those pairs on a short term basis but it does imply that traders should apply as much risk control as possible. It might seem logical to speculate with both pairs to the downside but with the recent action in the intermarket environment, I think a channel is more what we would expect over a strong trend to the downside.

To see today's pairs video, click here: http://www.pfxglobal.com/index.php?o...167&Itemid=149
__________________

Blogged with Flock