{"id":93493,"date":"2016-07-26T06:54:59","date_gmt":"2016-07-26T10:54:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=93493"},"modified":"2016-07-26T06:54:59","modified_gmt":"2016-07-26T10:54:59","slug":"daily-forex-signals-26-07-2016-usdjpy-dropped-on-fading-boj-stimulus-expectations","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/07\/daily-forex-signals-26-07-2016-usdjpy-dropped-on-fading-boj-stimulus-expectations\/","title":{"rendered":"Daily Forex Signals 26.07.2016: USD\/JPY Dropped On Fading BoJ Stimulus Expectations"},"content":{"rendered":"<div id=\"inves-3358324067\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 26, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><div class=\"content-inner\">\n<div class=\"field field-name-body field-type-text-with-summary field-label-hidden\">\n<div class=\"field-items\">\n<div class=\"field-item even\">\n<p><em>By GrowthAces<\/em><\/p>\n<p><strong>USD\/JPY Dropped On Fading BoJ Stimulus Expectations<\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>Japan\u2019s government is likely to inject JPY 6 trillion in direct fiscal outlays into the economy over the next few years under a planned stimulus package<\/strong>, , the Nikkei newspaper reported on Tuesday. The Finance Ministry had initially earmarked JPY 3 trillion for direct spending from national and local governments under its draft fiscal stimulus plan. But the amount was doubled on requests for bigger spending by government officials and ruling party lawmakers, the Nikkei said without citing sources. The size of spending could increase further as the government presents the draft stimulus plan for negotiations with ruling party lawmakers from Tuesday, the paper said.<\/li>\n<li>The direct spending would be part of a massive stimulus package to bolster the economy, which would also consist of state subsidies to private companies and lending programmes from quasi-government financial institutions. The total size of the package, which could be announced as soon as August 2, could exceed JPY 20 trillion, the Nikkei said. To fund part of the package, the government will compile a supplementary budget for the current fiscal year of around JPY 2 trillion, the paper said. The rest will be funded in the budget for the next fiscal year beginning in April 2017, it said.<\/li>\n<li><strong>The Bank of Japan is expected to announce expanded asset purchases and a rate cut further into negative territory at the end of its policy meeting on Friday.<\/strong><\/li>\n<li><strong>The JPY rose today, as traders dialled back expectations of how much new stimulus Japanese authorities will inject into an ailing economy<\/strong>. The JPY has dropped in the past few weeks on growing expectations that Japanese authorities would provide both fiscal and monetary stimulus to kick-start inflation. Some had been hoping for helicopter money, whereby the central bank would underwrite government debt, though policymakers have denied this is part of their plans.<\/li>\n<li>Japanese Finance Minister Taro Aso said on Tuesday he expected the BOJ to continue doing its utmost to meet its 2% inflation target and left it to the BOJ to decide on specific steps.<\/li>\n<li>The USD\/JPY has been capped by the cloud in recent days. <strong>We are looking to fade recovery moves at 105.80. A close below 104.25 level (38.2% retrace of the 99 to 107.49 rise) would be a strong bearish signal. We expect an elevated volatility in the coming days.<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>GBP\/USD: Support At 1.3059 Still Not Broken<\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>Bank of England policymaker Martin Weale said he saw the economic outlook differently after much weaker-than-expected British PMI data, a week after saying he needed firmer evidence before backing an interest rate cut.<\/strong> He said that PMI data for the services and manufacturing sectors, which pointed to the sharpest contraction since the 2008-09 financial crisis were a lot worse than he had thought. Markets are taking Weale\u2019s comments as near confirmation that the Bank may introduce a stimulus package at its next meeting.<\/li>\n<li>The BoE surprised markets in July by not cutting rates, which had been on hold since 2009, but the minutes of the decision did show that most policymakers expected to back an unspecified package of measures to boost the economy in August.<\/li>\n<li>Weale has served for six years on the BoE\u2019s Monetary Policy Committee and will step down after next week\u2019s decision. He is aware that history will be less kind to him given he was in a minority in favour of hiking interest rates in late 2014. It will be interesting to see if BoE MPC member Kristin Forbes also changes her colours from the \u201cKeep calm and carry on\u201d motto last week.<\/li>\n<li><strong>The GBP\/USD hit a two-week low on Tuesday after Weale\u2019s comments, but the 1.3059 level (61.8% retrace of the 1.2798 to 1.3481 rise) is still a very strong support.<\/strong> What is more, 14-day momentum is now marginally positive, which is a risk factor GBP bears need to keep in mind. We stay sideways on all GBP pairs.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>FOREX \u2013 MAJOR PAIRS:<\/strong><\/p>\n<p><img decoding=\"async\" title=\"\" src=\"https:\/\/growthaces.com\/sites\/default\/files\/tps_major_26072016gx.png\" alt=\"Daily Forex Trading Strategies - Major Pairs\" \/><\/p>\n<p><strong>FOREX \u2013 MAJOR CROSSES:<\/strong><\/p>\n<p><img decoding=\"async\" title=\"\" src=\"https:\/\/growthaces.com\/sites\/default\/files\/tps_crosses_26072016gx.png\" alt=\"Daily Forex Trading Strategies - Major Crosses\" \/><\/p>\n<p><strong>PRECIOUS METALS:<\/strong><\/p><div id=\"inves-2678558461\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p><img decoding=\"async\" title=\"\" src=\"https:\/\/growthaces.com\/sites\/default\/files\/tps_precious_26072016gx.png\" alt=\"Daily Trading Strategies - Precious Metals\" \/><\/p>\n<p>It is usually reasonable to divide your portfolio into two parts: the core investment part and the satellite speculative part. The core part is the one you would want to make profit with in the long term thanks to the long-term trend in price changes. Such an approach is a clear investment as you are bound to keep your position opened for a considerable amount of time in order to realize the profit. The speculative part is quite the contrary. You would open a speculative position with short-term gains in your mind and with the awareness that even though potentially more profitable than investments, speculation is also way more risky. In typical circumstances investments should account for 60-90% of your portfolio, the rest being speculative positions. This way, you may enjoy a possibly higher rate of return than in the case of putting all of your money into investment positions and at the same time you may not have to be afraid of severe losses in the short-term.<\/p>\n<p>How to read these tables?<\/p>\n<p><strong>1.<\/strong> <strong>Support\/Resistance<\/strong> \u2013 three closest important support\/resistance levels<br \/>\n<strong>2. Position\/Trading Idea:<\/strong><br \/>\nBUY\/SELL \u2013 It means we are looking to open LONG\/SHORT position at the Entry Price. If the order is filled we will set the suggested Target and Stop-loss level.<br \/>\nLONG\/SHORT \u2013 It means we have already taken this position at the Entry Price and expect the rate to go up\/down to the Target level.<br \/>\n<strong>3. Stop-Loss\/Profit Locked In<\/strong> \u2013 Sometimes we move the stop-loss level above (in case of LONG) or below (in case of SHORT) the Entry price. This means that we have locked in profit on this position.<br \/>\n<strong>4. Risk Factor <\/strong>\u2013 green \u201c*\u201d means high level of confidence (low level of uncertainty), grey \u201c**\u201d means medium level of confidence, red \u201c***\u201d means low level of confidence (high level of uncertainty)<br \/>\n<strong>5. Position Size <\/strong> <strong>(forex)<\/strong>\u2013 position size suggested for a USD 10,000 trading account in mini lots. You can calculate your position size as follows: (your account size in USD \/ USD 10,000) * (our position size). You should always round the result down. For example, if the result was 2.671, your position size should be 2 mini lots. This would be a great tool for your risk management!<br \/>\n<strong>Position size (precious metals)<\/strong> \u2013 position size suggested for a USD 10,000 trading account in units. You can calculate your position size as follows: (your account size in USD \/ USD 10,000) * (our position size).<br \/>\n<strong>6. Profit\/Loss on recently closed position<\/strong> <strong>(forex) <\/strong> \u2013 is the amount of pips we have earned\/lost on recently closed position. The amount in USD is calculated on the assumption of suggested position size for USD 10,000 trading account.<br \/>\n<strong>Profit\/Loss on recently closed position (precious metals)<\/strong> \u2013 is profit\/loss we have earned\/lost per unit on recently closed position. The amount in USD is calculated on the assumption of suggested position size for USD 10,000 trading account.<\/p>\n<p>Source: <a href=\"https:\/\/growthaces.com\">GrowthAces.com \u2013 Daily Forex And Precious Metals Signals<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By GrowthAces USD\/JPY Dropped On Fading BoJ Stimulus Expectations Japan\u2019s government is likely to inject JPY 6 trillion in direct fiscal outlays into the economy over the next few years under a planned stimulus package, , the Nikkei newspaper reported on Tuesday. The Finance Ministry had initially earmarked JPY 3 trillion for direct spending from [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-93493","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=93493"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93493\/revisions"}],"predecessor-version":[{"id":93495,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93493\/revisions\/93495"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=93493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=93493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=93493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}