Forex Trader DailyThe sideways consolidation continues on the intraday USD/JPY across the 15 and 30 minute charts. Prices remain range-bound amidst a flat Dow and a U.S. Dollar that remains in a daily uptrend but it congesting intraday.
Since neither the U.S. Dollar nor the equities market are taking leadership of market psychology, the USD/JPY remains a pair that is waiting [...]
The 200sma is cutting across the charts as prices are topping out at the resistance at 90.03. The 90.00 psychological level also is holding prices from rallying further as the 60 minute time frame is in a distribution cycle. This cycle is characterized by exhaustion at highs and lows and the USD/JPY is doing just that [...]
The 60 minute USD/JPY has formed a Continuation Falling Wedge pattern and this is a trending pattern that is suggesting yen strength over the dollar. If the U.S. Dollar is weak then the Dow is usually up. Since both are relatively flat here during the early hours of the New York session traders will have [...]
With the psychological levels of 0.8380 and 0.8400 as ceilings, the AUD/USD is setting up a swing short as prices near the 34ema low. This is a perfect opportunity to play a quick bounce (correction) within the content of a mark down cycle on the 15 minute chart.
The AUD/USD is moving lower with minimal U.S. [...]
The uptrend on the USD/JPY reflects this morning’s U.S. Dollar Index strength. The dollar-yen can be a tricky pair as one of the main keys to setting up trades is to determine which market is it following: The Dow or the U.S. Dollar?
To simply say that the USD/JPY is a risk barometer is not enough. [...]
The USD/JPY - the barometer for risk aversion and risk appetite — has been selling off since the Non-Farm Payroll propelled the Dow Jones high last Friday.
As prices are sinking back into the 34ema high support after the daily USD/JPY (top left) exploded with Friday better-than-expected NFP.
The breakout should not be considered a “false breakout” [...]
The relationship between the Dow Jones and U.S. Dollar Index has been opposite and as the risk appetite is returning to the market with yesterday’s 172 point rally in the Dow, the U.S. Dollar’s flight to safety trade was unraveling. The U.S. Dollar continues to sell off with good data and news and this is [...]
Trading chart patterns does not mean that major fundamental events are ignored. Rather there is usually an indication that the market is “waiting on something” more often than not. This can be seen in triangle, rectangle, and pennant pattern alerts that occur before scheduled economic releases. Even more often these will occur on shorter term [...]
The USD/JPY, long the barometer for equities risk appetite/risk aversion, is congesting across all timeframes. Since more breakouts are first seen on short term charts, the 15 minute Continuation
Triangle alert is a good place to start. The Initial Trend is slightly more elevated that an ideal non-trending market would be and is reflecting the volatility [...]
One of the most challenging aspects of forex trading is factoring in the markets that move it. Consider the importance of the the U.S. Dollar, Dow Jones, crude oil, gold, and commodities in the most popular pairs. Often times currencies will reflect the movement in these non-forex markets. The USD/JPY is such a market as [...]