USDJPY, WTI, And DXY On 3/6/19

TL;DR

The US dollar yen may experience a correction before potentially moving higher, while crude oil is showing signs of weakness and may head lower. Caution is advised for those with long positions in oil and equities. The dollar's impressive run may pause, but a breakout over 97.40 is still possible.

Transcript

hi traders at Forex top hunter on twitter dale Pinkert here with you last week i talked about the potential of US dollar yen trading up towards the 112 level showing you a four hour chart where we made new highs traded at 112 came off and then in today's session we took it out as you could see by the RSI we are not confirming this high so looking f... Read More

Key Insights

• 💰 The US dollar yen may experience a correction before potentially moving higher.
• 🤯 Crude oil shows signs of weakness and may head lower towards the 200-day moving average.
• ✋ Caution is advised for long positions in oil and equities due to a microphone top formation and high bullish sentiment indexes.
• 🏃 The dollar's strong run may pause, but there is still the potential for a breakout over 97.40 in the long run.
• 🖐️ Sentiment and technical indicators play an important role in the trader's analysis.
• 💰 UK developments are affecting the strength of the pound and influencing the dollar's performance.
• ✳️ The trader emphasizes the importance of risk management and avoiding assumptions in trading decisions.

Questions & Answers

Q: Why is there potential for a correction in the US dollar yen?

The RSI is not confirming the recent high of 112, suggesting a potential correction. The trader expects a correction towards the breakout level around 111.10 or possibly 110.

Q: What is the outlook for crude oil?

Crude oil has experienced a retracement and is slightly weaker compared to stock indexes. The trader sees potential for it to head lower towards the 200-day moving average and even lower levels.

Q: What caution should be exercised for oil and equity positions?

The trader advises caution for long positions in oil and equities due to the bearish formation of a microphone top in crude oil and high bullish sentiment indexes. He suggests being careful with long positions and warns against assuming oil and equities will continue to rise.

Q: What is the outlook for the US dollar?

The dollar has had a strong run, reaching 97 from 95.80. While the trader expects a pause, he still sees the potential for breaking out over 97.40 in the long run. However, caution is advised as a breach of 96.60 and 95.84 could turn sentiment bearish.

Summary & Key Takeaways

• The US dollar yen is showing signs of potential correction after reaching the 112 level, with the RSI not confirming the recent high. A correction towards the breakout level around 111.10 or possibly 110 is expected.

• Crude oil has experienced a retracement and is slightly weaker than stock indexes. It may head lower towards the 200-day moving average and lower levels.

• Caution is advised for long positions in oil and equities, as sentiment indexes are in the high bullish range. The microphone top formation in crude oil suggests bearishness.

• The dollar has had a strong run, reaching 97 from the 95.80 level. It may pause now, with weakness in cable due to UK developments. A breakout over 97.40 is still possible in the long run.