Hi guys, I was wondering why the JPY fades kept bouncing? I would get my stops to break-even and many of my trades would zero out, so I decided to dig a little deeper.
It's good idea to zoom out on the Currency Barometer every few days. I mentioned the JPY double-top on the Long Term Barometer a couple days ago. When we zoom out to the 'Daily' time frame (the long term is 4 hours), we see a more clear picture of what is going on. The JPY has a double top, but it is not over extended (fully) yet. it still has room to push up before a longer term consolidation. Hence my bouncing fades.
When the JPY (yellow line) hits 80, we will see a longer term consolidation from the currency. Now we wait...
The daily view shows a few more interesting patterns. Here are a couple that I noticed:
The NZD keeps bouncing off of the 50 level after the recent sell-off. From my experience using the barometers, one bounce at 50 means another move back in the same direction (in this case it would have been into weakness again), but 2 bounces at 50 usually means that the 50 level will fail. We should see continued strength from the NZD over the next couple of weeks.
The AUD is bouncing down inside a bearish channel. Based on where we are in the channel, the next push should be 'down'. We won't see a consolidation until the AUD get near 20.
This is not investment advice, just my opinion(s). Please trade accordingly.
Trade safe and keep an eye on news.
It's good idea to zoom out on the Currency Barometer every few days. I mentioned the JPY double-top on the Long Term Barometer a couple days ago. When we zoom out to the 'Daily' time frame (the long term is 4 hours), we see a more clear picture of what is going on. The JPY has a double top, but it is not over extended (fully) yet. it still has room to push up before a longer term consolidation. Hence my bouncing fades.
When the JPY (yellow line) hits 80, we will see a longer term consolidation from the currency. Now we wait...
The daily view shows a few more interesting patterns. Here are a couple that I noticed:
The NZD keeps bouncing off of the 50 level after the recent sell-off. From my experience using the barometers, one bounce at 50 means another move back in the same direction (in this case it would have been into weakness again), but 2 bounces at 50 usually means that the 50 level will fail. We should see continued strength from the NZD over the next couple of weeks.
The AUD is bouncing down inside a bearish channel. Based on where we are in the channel, the next push should be 'down'. We won't see a consolidation until the AUD get near 20.
This is not investment advice, just my opinion(s). Please trade accordingly.
Trade safe and keep an eye on news.
