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Tag Archives: JPY
In this article we will present a currency strength strategy for forex trade entries and another strategy for market analysis, both strategies work. These two strategies will improve any trader’s understanding of the current market condition, along with more much more profitable trade entries, trade after trade.
Currency Strength Strategy For Current Market Momentum
Measuring the current market momentum in real time is one currency strength strategy. In the example below the USD (US Dollar) was weak on all pairs. This drove significant movement for traders on this day (2-3-2016) on all seven of the USD pairs we follow at Forexearlywarning.com. There was also some minor NZD (New Zealand Dollar) and CAD (Canadian Dollar) strength in the market. So the NZD/USD moved strong to the upside, makes perfect sense. Since the NZD/USD was also in an uptrend at this time, it should continue higher on the D1 time frame to the 0.6800 resistance area.
Also, the USD/CAD dropped and is currently at one support level, so in this case a trader may choose to scale out lots and reduce position size. The EUR/USD also moved up strong on this day and broke out of it’s trading range, now this pair has additional upside on the D1 time frame as well. So you can also plan more trade entries going forward on the pairs that are trending. A phenomenal and profitable day of trading for any forex trader on only one group of pairs, with strong movements. The real time currency strength indicator you see below is The Forex Heatmap®, which provides live buy and sell signals for 28 pairs, including the US Dollar pairs and seven other currencies
Another Example of Intraday Currency Strength
This is another example of how to use intra day currency strength for strong trade entries. This example is from 7-5-2016. On this day the British Pound (GBP) was weak on all pairs, and the Japanese Yen (JPY) was strong on all pairs. This caused a strong sell off on the GBP/JPY. This pair sold off over 300 pips in one trading session, also, the major trend on this pair is down on the larger time frames, so more pips are possible despite this strong trade entry.
Strong signals like this happen routinely on the forex in the 8 currencies we track at Forexearlywarning.com, but since so many traders use technical indicators they always miss the pips. Using easy to interpret visual tools like The Forex Heatmap®, which monitor the strength of the currencies and money flows in real time, you can trade like a pro.
Using Currency Strength for Overall Market Analysis
Currency traders who like our real time currency strength tools can have a big advantage if they use currency strength to analyze the entire market every day. Always knowing the overall condition of the market, based on trends will raise the bar even higher and complete your overall currency strength trading system. Analyzing the market to determine the strongest versus weakest currency takes time but it well worth it, and your reward will be increased pips.
You can set up some moving averages for all of the JPY pairs, USD pairs, NZD pairs, etc. to start. Then drill down the charts daily using multiple time frame analysis. For example if all of the JPY pairs are in up trends, then you know the JPY is weak. Then, if you can find a strong currency to go with it, you are in business to make pips. On the Forexearlywarning website, we show you how to set up the trend indicators, and how to analyze the market by individual currency. This way you will not only be trading in the direction of the daily market momentum, but also with the trend.
Today in the forex market the GBP/JPY had a sell signal on The Forex Heatmap®. This pair sold off strong to just above the 184.00 support level. We would scale out lots at this price but it could continue lower and has additional room to drop on the H4 and D1 time frame to the next support level. The AUD/JPY also dropped today and this pair should continue down to at least the 82.50 support, and possibly much lower since this pair is in a strong downtrend. The sell signal for the GBP/JPY is below, this is the Forex Heatmap®, it gives live trading signals for 28 currency pairs. You can see that the GBP (British Pound) was weak today and the JPY (Japanese Yen) had some strength, creating a scenario for a strong sell off on the GBP/JPY pair. This profitable trading system for 28 pairs is available from Forexearlywarning.com.
The EUR/JPY is trending higher on the larger time frames. See the image of the W1 time frame below. The current resistance breakout point is 140.25, shown on the chart below. You can set a price alert there. When the alert hits check The Forex Heatmap® to verify the buy entry. The overall upside potential is to as high as the 148.00 area, see the red lines on the chart. This is about 775 pips of overall potential, so the money management ratio is excellent on this trade. This trend analysis was done with some exponential moving averages we provide to all forex traders.
The USD/JPY chart and trend analysis indicates a strong uptrend on the largest time frames. The MN time frame is shown below. Current short term breakout point and price alert area is 124.00. You can set a price alarm here. When the alert hits check The Forex Heatmap® to confirm the trade entry. Past there there is some minor resistance at the 125.65 area. The overall potential is up to the 134.00 area. The charts you see below are our free trend indicators, which are 5/12 exponential moving averages, then analyzed with multiple time frame analysis.
The CAD/JPY is building a new uptrend, as shown on the chart below. The trend charts indicate that this pair has broken out of its trading range. The D1 time frame trend is now formed and the W1 time frame trend could also form. The CAD/JPY pair has a current resistance level and breakout point at 97.00, you can set a price alert here. When the alert hits check for buy entry verification using The Forex Heatmap®. This pair has a lot of upside pip potential to 104.00 or higher, which is around 700 pips, see the red lines on the chart. The trend chart you see below has some moving averages we provide to our clients, applied to multiple time frames.
The GBP/JPY is building a new trend going up on the D1 time frame. The current analysis shows resistance is at 179.25, you can set a price alarm here for a buy. Above this price when the alarm hits look for a buy signal on The Forex Heatmap®. The overall pip potential is very good going up to the 184.50 resistance, this is over 500 pips of potential movement. The trend analysis you see below was done with moving averages and using multiple time frame analysis by individual currencies, which is our analytical technique for 28 pairs.
Today in forex trading the The Forex Heatmap® visual alert system showed that the JPY (Japanese Yen) strength was evident on all pairs. The EUR (Euro) and CHF (Swiss Franc) were also weak. This drove the EUR/JPY and CHF/JPY lower. The EUR/JPY is in a strong down trend and should continue lower. The CHF/JPY is still trending down on the D1 time frame and we would scale out lots on this sell trade as the ultimate support target is not known. The alert system you sell below is The Forex Heatmap®, it provides visual alerts for eight currency groups and 28 pairs total, in real time.
The CAD/JPY chart on the D1 time frame is shown below. This pair is trending higher now. The current resistance level is about 96.50, set a price alert here. Above this price look for a buy signal on The Forex Heatmap®. It has excellent upside potential, possibly hundreds of pips, noted by the yellow lines. The trading charts you see are the exponential moving averages that we use at Forexearlywarning, we provide these charts to our clients at no cost.
The GBP/JPY charts show that this pair is is still trending up on the larger time frames, but it has sold off on the H4 time frame. We expect this pair to reverse to the upside. It has the potential to cycle back up to the 187.00 resistance area again. You can set a price alert at the 180.75 level on this pair. When the alert hits look for a buy signal on The Forex Heatmap®. This is the H4 time frame chart shown below, these charts are exponential moving averages set up on a meta trader platform.
Today in currency trading the Japanese Yen (JPY) strength was evident on all pairs. There was also clear GBP (British Pound) weakness. The GBP/JPY sold off and this pair is trending down on the D1 time frame. This pair should continue lower for at least one more day, but the overall trend on the largest time frames is still up so we would scale out lots at this price level. This pair will likely stall at support and reverse back to the upside in a day or two. The live currency strength signal you see below is from The Forex Heatmap®, which gives currency strength signals for 8 currencies and 28 pairs for traders.