Good morning Forex Kings,
There has been some large swings on all pairs over the past couple of days. We were unlucky with the AUDJPY in hindsight we should have closed off some profits yesterday. A couple of trades we have held slightly too long missing out on securing a win.
Global equities dropped over night as corona-virus fears escalated as well as trade tensions with China.
A leading infectious disease health expert Dr Anthony Fauci warned Congress that a premature lifting of lockdowns could lead to additional breakouts of the virus which has already killed 80,000 Americans so far.
Dr Fauci has suggested the US should hold off on reopening states and wait for a further decline in cases. The stock market took the news as negative as they have been pricing in a potential reopening over the past week.
Additional out breaks have been reported in China and South Korea, Russia is also a new epicentre for the virus reporting over 200,000 cases.
This morning we are looking at the USDJPY as the pair previously broke a negative trend.
There appears to be a bull flag structure which is trading down to a key support zone at 107.00.
Trade setup: BUY LIMIT: Entry 107.00, stop loss 106.60 and take profit 108.00
Stop loss: 40 pips
Take profit: 100 pips
I am also watching to see if the market breaks the bull flag before reaching 107.00. I will try to keep you all updated via telegram.