Good morning. The story overnight is one of the USD continuing to weaken against risk currencies (e.g. EUR, GBP), and everything is strengthening against JPY.
It remains to be seen whether the strong USD trend is over or merely pausing.
AUDUSD has been on a strong run up overnight.
It could be that our trading focus will begin to shift away from USD pairs towards JPY pairs.
There were 4 hour Multiple Time Frames Momentum set ups on 4 hour bars closing halfway through the Tokyo session on AUDJPY and GBPJPY. AUDJPY looks the better bet, remember you need at least 200 pips of profit to make this strategy pay if you see a set up on the 15 minute chart for either of those this morning.
Late last night after London close I took a Demand Return trade on AUDUSD short, risking a few pips on a 15 minute engulfing bar. It did not work. Notice that although the demand zone was broken very slightly later, AUDUSD subsequently fell strongly overnight, but did not reach Friday's low which would have been the usual first profit target:
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