Good day to all! This is my first Instablog post on Seeking Alpha and it is a brief overview of the current positions in our Forex currency fund.
We are currently short EURGBP because we feel GBP is beginning to bottom and the Euro is set to weaken significantly versus the pound.
The remaining three positions are based on two different views. The first is that the BOJ will begin to enter the market to weaken the yen after the G7 meetings later this month. This will push USDJPY and EURJPY towards their 12 month highs.
The second view is that AUDUSD will test its low during the next 3 to 4 months due to the issues in China and Japan and the actions of the RBA during the last few weeks signal it will remain "dovish" through the end of the year. We currently have a target on our AUDUSD position of .716 and feel that if momentum continues that level should be met within the next few weeks.
As of now, it is not a good idea to enter into a AUDUSD short because it has moved significantly during the last few weeks. Look for a short-term pop to short the currency around the .75 level with 100 bip stop and a target of .715.
The best reward to risk in Forex can be found in the yen pairs. Look for opportunities to buy on the support of high-volume areas. For example, look to buy USDJPY around 108 and EURGBP at 123.
Look forward to your thoughts and have a great weekend.
Disclosure: I am/we are long JPYUSD AND EURJPY.
Additional disclosure: The fund is short EURGBP and AUDUSD