I love the movement of USDJPY in week 50, it moved quickly and completed the whole trend levels. USDJPY started with a W, moving upwards fast during the opening hours in week 50, and never looked back. Through week 50, it managed to create all the consolidation zones on the H1 and went on to create a reversal M on its level 3, and only moved away to form a level 1 downtrend a few hours before the close of the market on Friday.
I managed to enter a couple of profitable trades when USDJPY is in its level 2 and 3. I exited the short from its level 3 before the close of the markets as I do not want any unpleasant surprises and gap during the opening of the market in week 51. I am maintaining a bearish outlook for this pair, I will be finding the short opportunities in the coming week.
Such movement of the USDJPY can wipe out traders who made their decision(s) partly or hugely on the correlations between currency pairs. For example, we generally know that USDJPY and EURUSD has an inverse relationship; one moves up, and the other one down and vice versa. In week 50, EURUSD constrained itself to a range of roughly 170 pips, staying at level 1 consolidation uptrend, and even break below the obvious support line in its level 1 zone, which it made a pullback before market closure. However, we did not see USDJPY engaging on similar price movement, instead, it made a full 3 levels uptrend. EURUSD consolidated, while USDJPY made a clear trend movement. This is a great example of how trading on correlations between pairs can hamper your outlook, trade entries, and profitability.
However, many of us are susceptible to such focus on correlations, so I circumvent such focus by focusing on 1 pair at a time, and only enter when candlestick patterns, overall trend views are clear to me.
With the price movements of USDJPY in week 50, I am confident to suggest us taking the bearish view and find good opportunities to enter short in USDJPY. You can do it in stages, breaking up contract sizes into smaller portion if you are not too confident or unsure about its movement in week 51. For me, I am going to build up contact sizes when the market opens.
If you have any thoughts on USDJPY's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and share this analysis, and follow me for my weekly updates! If you would like to see how I enter and manages my trade, it would be shared on Twitter (@xunnobi) and StockTwits (@xunnobi)
I managed to enter a couple of profitable trades when USDJPY is in its level 2 and 3. I exited the short from its level 3 before the close of the markets as I do not want any unpleasant surprises and gap during the opening of the market in week 51. I am maintaining a bearish outlook for this pair, I will be finding the short opportunities in the coming week.
Such movement of the USDJPY can wipe out traders who made their decision(s) partly or hugely on the correlations between currency pairs. For example, we generally know that USDJPY and EURUSD has an inverse relationship; one moves up, and the other one down and vice versa. In week 50, EURUSD constrained itself to a range of roughly 170 pips, staying at level 1 consolidation uptrend, and even break below the obvious support line in its level 1 zone, which it made a pullback before market closure. However, we did not see USDJPY engaging on similar price movement, instead, it made a full 3 levels uptrend. EURUSD consolidated, while USDJPY made a clear trend movement. This is a great example of how trading on correlations between pairs can hamper your outlook, trade entries, and profitability.
However, many of us are susceptible to such focus on correlations, so I circumvent such focus by focusing on 1 pair at a time, and only enter when candlestick patterns, overall trend views are clear to me.
With the price movements of USDJPY in week 50, I am confident to suggest us taking the bearish view and find good opportunities to enter short in USDJPY. You can do it in stages, breaking up contract sizes into smaller portion if you are not too confident or unsure about its movement in week 51. For me, I am going to build up contact sizes when the market opens.
If you have any thoughts on USDJPY's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and share this analysis, and follow me for my weekly updates! If you would like to see how I enter and manages my trade, it would be shared on Twitter (@xunnobi) and StockTwits (@xunnobi)
