We are long USDJPY

Good morning,

AUDCAD

The last few days has seen some disagreement between the Australian government and the RBA on the interest rate neutrality position recently adopted. The RBA is supposed to be independent so the implications are unclear but one to keep an eye on. Not much change on the CAD front to report.

The trend on the pair is still looking bullish but should be pulling back a litttle for entries as it is currently in no man’s land.

audcadh4

USDJPY

The Yen showed a little strength on the back of data overnight and the US$ is still failing to look bullish. CFTC info shows a reduction in Yen shorts and a developing story is that of the Japanese pension funds:

http://www.forexlive.com/blog/2014/04/18/three-members-of-japans-gpif-panel-to-be-sent-packing-by-abe-18-april-2014/

A bullish stance on the pair would alow entries now given the overnight pullback to the 55hma and well supported price action on the confirmation charts H4 and D1.

usdjpyh4