Imbalance alert: AUD/JPY fundamentals and sentiment analysis video
We saw some wild price action over the last few weeks. I talked to my friend who mans one of the trading desks at JP Morgan last week and he wasn’t allowed to leave the screen for hours on end. His boss said that he wanted to be able to go to the bathroom and eat lunch without losing millions of dollars so he wanted an eye on the market constantly! Anyway I hope you can appreciate how huge the volatility was.
But you know what? While the rest of the market is scared, volatility brings opportunity. The recent volatility has blessed us with imbalances in such pairs as the AUD/JPY, where the fundamentals haven’t been as affected by what’s happening in Europe, yet the pair got over punished. Furthermore, by spying on the market with COT data, one can realize a divergence in net positioning in the JPY and price action. Watch the forex fundamental analysis forecast for the AUD/JPY for more detailed information on this potentially profitable imbalance!
