Crypto Capitulation Catalyst


BACK TO THE WATCH - This week's economic calendar is super dull, though of course, we still could see a lot of volatility. Central bank speak alone could do the trick and with markets already looking vulnerable to some reversals, we may not even need any data to get things going. For now, it's back to sitting back on the two positions in USDJPY and AUDNZD. We took caught a nice short term move in CADJPY on Friday and managed to take some profit there. I'm not really seeing a justification for this latest pullback in the Euro, which means this could set up our next trade. I continue to like the idea of buying on dips here. Setbacks that result in some overextended intraday readings will give us a shot to play back into the more prominent uptrend. USDJPY is just consolidating at the moment, and although AUDNZD has pulled back, this is nothing that gets me nervous, as this cross is always very choppy and ultimately, should continue to be very well supported for that big move to the topside we're looking for.

cartoon jan 9

BLOCKCHAIN - But there's definitely a feeling of uneasiness right now and I'm expecting a big run of safe haven flow over the coming days. This should benefit the short USDJPY play. The view expressed some months back that cryptocurrencies could be the catalyst that bring the house down, has been a view that has become a much bigger reality since November. The total market cap of the crypto world is astounding and while I continue to see incredible potential in the space, right now, there is just too much crap out there, with scammy coins offered out left and right. It is a world where in 3-5 years, we will start to realize the potential of the technology, that is now known as blockchain. But right now, there is still very little proof of concept. On top of this fact, we also need to figure out which of the legitimate coins will be around for the ride, with Bitcoin's status even in question. And once we get past that question, we then need to figure out if it will even be blockchain. Maybe it's hashgraph or holochain or something else. But right now...stay safe and look out below.

That big reversal in risk sentiment could be coming in the sessions ahead.


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