VIX goes for pre-crisis low, watching NZDJPY

Still watching NZDJPY for a possible long trade. The pair is quickly approaching the falling trendline at 83.295 from 2014. In case of a breakout at the monthly close, I'll buy NZD with a first target at 88. The move is currently supported by a broad risk-on sentiment, with the volatility index VIX apparently aiming for its 9.39% pre-crisis low and many equity indices going for their respective all-time highs.

Open positions as of 26/01/2017 11:11am CET:
EURTRY short from 4.0524, unrealized return: -1.97%

Realized YTD return: +0.7% from 2 trades
Total YTD return: -1.27% from 3 trades

Watching NZDJPY for breakout

Let's be honest: It's been a rather boring week in FX and I'm happy it's drawing to a close. Yellen's comments didn't really provide any new information, yesterday's Draghi presser was a snoozer, volatility in G10 FX was subdued. Only Theresa May's Brexit speech moved markets by giving a short-lived boost to the GBP, but that's unlikely to persist with actual Brexit negotiations on the horizon.

Looking forward, Trump might stir things up from early next week. I still favour USD long trades but, as I've said before, I'm waiting for a catalyst before entering into a new position.

I also like NZDJPY long with a potential breakout above 83.29-.75 that might extend to 88 or even 93. In addition, the pair offers a bit of a carry pickup. On the sidelines as of now, but standing ready to open that trade if momentum doesn't fade.

NZDJPY 20/01/2017G10 Interest Rates 20/01/2017Open positions as of 20/01/2017 9:00am CET: Flat

Realized YTD return: +0.7% from 2 trades