The first movement of the impulse wave, which started in Q4 2012, had a movement of about 26,000 pips from about 77.xx to 103.xx. Wave 5 should mirror this movement, which if it began in the summer of 2016 around 98, would bring us to the 124 area. This would certainly be a double top, and macroeconomic headwinds will likely demand continued strength. From here, there are still 600 pips left in this movement, so we will be buying dips and taking partial profit on spikes. If the Euro reaches parity before the U/J hits our target, more than likely we will square all trades and reassess.
Current Positions -
EUR/USD Short from 1.09.30, Average 1.06983
USD/JPY Long from 113.20, Average 114.69
GBP/JPY Long from 135.996, Average 143.369
NZD/JPY Long from 80.73, Average 81.51
USD/ZAR Long from 14.3854, Average 14.2138
Carry Trade strategy - EUR/JPY Long and EUR/ZAR Short exited yesterday. Would maintain small position if our broker carried ZAR/JPY, but maintaining two pairs with no option hedges proved to be too volatile and margin heavy. Still profitable.
Current Positions -
EUR/USD Short from 1.09.30, Average 1.06983
USD/JPY Long from 113.20, Average 114.69
GBP/JPY Long from 135.996, Average 143.369
NZD/JPY Long from 80.73, Average 81.51
USD/ZAR Long from 14.3854, Average 14.2138
Carry Trade strategy - EUR/JPY Long and EUR/ZAR Short exited yesterday. Would maintain small position if our broker carried ZAR/JPY, but maintaining two pairs with no option hedges proved to be too volatile and margin heavy. Still profitable.