Tuesday 27 August.

The soft landing, risk on sentiment remains in the currency space. And both the JPY and USD are feasibly short candidates, which one, depends on the USD JPY chart in the moment.

With the market seemingly looking past inflation, potential headwinds to the positive sentiment are US jobless claims data, whilst only an 'orange flag' on the data scale, it does have significance at the moment. Plus middle east, Ukraine war and China / Taiwan headlines are bubbling underneath the surface. Also, upcoming NVIDIA earnings is on the markets mind. And there is the possibility of nervous trading ahead of the report due on Wednesday.

In other news, a warning of a hard hitting October ​budget isn't what residents of the UK wanted to hear, but it's not dented sentiment for the GBP yet.

With yesterday's trade complete, I'm currently waiting for a 'fresh bout of weakness' in either the JPY or USD before feeling confident in another 'risk on' trade.

Feel free to email any questions: johnelfedforexblog@gmail.com