Trading ideas for USD/JPY, GBP/USD and WTI


USD/JPY: Yesterday the USD/JPY advanced to a four-year high above 116.00 for the seventh day in a row after the beginning of the US session. The market sentiment is downbeat as hawkish Fed signals that it could raise rates sooner to tame inflation. Following the release of the minutes, futures of the Federal Funds Rates were pricing in an 80% possibility of a 25 basis points hike by the US central bank.

Buy Limit 115.60/Take Profit 116.50/SL 115.20


GBP/USD: Cable showed a bullish dynamic during yesterday’s New York session, having reached a high at 1.3600 level. The market sentiment remains mixed, with US indices fluctuating between stocks gainers and losers. In addition to the Fed-linked talks and market reaction, fears of the South African covid variant, Omicron, also affected the market’s risk appetite, as well as the GBP/USD prices. Also GBP/USD pair may remain under pressure due to hawkish hopes from the Fed. Today’s UK Services PMI for December will be important because it’s expected to confirm initial numbers after the Manufacturing PMI jumped. Monthly data of the US Good Trade Balance and ISM Services PMI for December will also be closely watched by traders, as well as weekly numbers of US Jobless Claims.

Sell 1.3550/TP 1.3440/SL 1.3590


WTI: Bearish US inventory numbers impacted oil markets and they’re growing after pulling back with front-month WTI futures rebounding from 77.00 support level. West Texas Intermediate oil reached 78.50 level on Wednesday, which was the highest price growth since 25 November, the day before Omicron scared financial markets, with WTI now up about $4.0 from earlier weekly lows. There hasn’t been anyone notable catalyst for Wednesday’s bullish moves. Traders keep watching Tuesday’s OPEC+ decision to press ahead with existing plans to hike output by 400K barrels per day in February. The decision has been taken by some market participants as a vote of confidence in the oil market’s ability to take more supply. Elsewhere, oil prices were supported by bearish weekly US EIA crude oil inventory report. To recap the details, crude oil stocks saw a smaller than expected draw of 2.144M barrels, but this will probably have a short term effect considering the OPEC+ plans.

Sell 77.30/TP 74.50/SL 78.50


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