Profit Locked: +76,164 USD! Continuing EUR/USD Short, Targeting Bitcoin and USD/JPY
Trading Results: January 6 – January 10
- Weekly Profit: +76,164 USD
This week saw surprisingly active price movements despite incomplete liquidity, offering numerous trading opportunities. By accurately capturing the USD’s price action, I ended the week with a positive balance. As liquidity returns, I am focusing on flexible currency pair selection.
Continuing with the following core strategies:
- Short EUR/USD
- Long Bitcoin
- Long USD/JPY
Market Overview for Last Week (Week of January 6, 2025)
USD/JPY
- Movement: Dropped to 156.24 before rebounding to 158.55 (highest since July last year).
- Key Drivers: Supported by rising US long-term yields and reports on Trump’s tariff policies.
EUR/USD
- Movement: Fell from 1.0437 to 1.0273.
- Key Drivers: Concerns over European economic slowdown and rising US yields.
GBP/JPY
- Movement: Retraced from the 198 range to mid-193.
- Key Drivers: Pound selling triggered by rising UK long-term bond yields.
CAD/JPY
- Movement: Rose from the high 108 range to mid-110.
- Key Drivers: Optimism over new leadership following Trudeau’s resignation.
AUD/JPY
- Movement: Dropped from the 99 range to the high 97 range.
- Key Drivers: RBA rate cut expectations and rising US yields.
ZAR/JPY
- Movement: Consolidated within the 8.4 range.
- Key Drivers: USD buying supported by rising US yields.
Outlook for the Week of January 13, 2025
USD/JPY – Bullish Bias
- Key Events:
- US CPI and Retail Sales data.
- Reports on Trump’s tariff policies.
- Risks:
- Potential interventions or warnings against yen depreciation.
EUR/USD – Bearish Bias
- Key Events:
- German Retail Sales and Employment data.
- Increasing concerns over a European economic downturn.
GBP/JPY – Neutral
- Key Events:
- UK CPI and GDP figures, which may offer short-term direction.
CAD/JPY – Neutral
- Key Events:
- Mixed sentiment from leadership optimism and rate cut fears.
AUD/JPY – Bearish Bias
- Key Events:
- Australian Employment Data may heighten rate cut expectations.
ZAR/JPY – Bearish Bias
- Key Events:
- Rising US yields and SARB rate cut expectations.
Key Events This Week
January 14 (Monday)
- US: December Producer Price Index (PPI)
- Australia: Westpac Consumer Confidence Index
January 15 (Tuesday)
- US: December Consumer Price Index (CPI)
- UK: December CPI
January 16 (Wednesday)
- US: December Retail Sales and Industrial Production
- Australia: December Employment Data
January 17 (Thursday)
- US: Focus on federal debt ceiling discussions
P.S. Lessons from U.S. Wildfires and Market Impact
The ongoing wildfires in Los Angeles, with damages exceeding $150 billion, mark the worst on record. Disaster risks are an undeniable factor in real estate investments and regional living decisions.
High Wildfire Risk Areas
- North America:
- Los Angeles, San Francisco, Denver
- Europe:
- Athens, Marseille, Lisbon
- Oceania:
- Sydney, Melbourne, Brisbane
Natural disasters significantly affect asset values, making it crucial to incorporate risk assessments into investment strategies.
Final Thoughts
Whether in trading or real estate investing, risk management is critical. Success hinges on gathering accurate information and maintaining a flexible strategy. Let’s approach this week with both caution and confidence in our decisions!
