Bonds and stocks might be dancing to the Trump effect but FX seems to be holding back
In the topsy-turvy world of FX, things are very rarely clear. The Trump effect is still in full flow, Fed hikes and data be damned.
It's easy to get sucked into what's happening elsewhere and jump into a trade in FX thinking you're jumping on a moonshoot.
It's times like this, when we're in the grips of such madness, that it pays to take a simple, wider view at your charts and see what exactly a currency needs to do to join in with the fun and games.
USDJPY weekly chart
That's four lines that would tell me whether we have a Trump trade or not. Everything else in between is just noise.
