rfxsignals April 16, 2019 No Comments

Sthree Sakthi (SS-153) 16/04/2019- Kerala Lottery Result

Sthree Sakthi (SS-153) 16/04/2019- Kerala Lottery Result

KERALA STATE LOTTERIES – RESULT


www.keralalotteries.com PHONE:- DIRECTOR OFFICE FAX
www.kerala.gov.in 0471-2305230 0471-2305193 0471-2301740
Sthree Sakthi LOTTERY NO. SS-153rd DRAW held on 16/04/2019 AT GORKY BHAVAN NEAR BAKERY
JUNCTION THIRUVANANTHAPURAM
1st Prize- Rs :6,000,000/- SH 710595 (KOLLAM)
Consolation Prize- Rs. 8,000/- SA 710595 SB 710595 SC 710595 SD 710595
SE 710595 SF 710595 SG 710595 SJ 710595
SK 710595 SL 710595 SM 710595
2nd Prize- Rs :500,000/- SJ 679245 (PALAKKAD)
FOR THE TICKETS ENDING WITH THE FOLLOWING NUMBERS
3rd Prize- Rs. 5,000/- 0450 0948 1094 1695 1736
2930 4479 6298 6570 7403
8759 8899
4th Prize- Rs. 2,000/- 0966 1242 4510 5173 5922
6105 6278 9995
5th Prize- Rs. 1,000/- 0554 0810 1412 1764 2398
3416 4171 4216 4463 4819
5808 6994 7088 8508 8526
8681 8797 8868 9513 9845
6th Prize- Rs. 500/- 0083 0265 0446 1278 1323
2071 2431 2447 2448 3002
3149 3468 3851 4293 4535
4568 4893 4987 5606 5745
6094 6378 6517 6638 7242
7602 7623 8416 8466 8621
8973 8986 9201 9476 9727
9949
7th Prize- Rs. 200/- 0254 0461 0692 1042 1152
1380 1503 1637 1646 1942
2008 2665 2728 2771 2934
3348 3816 4077 4274 4497
4683 4851 4904 5563 5937
6034 6301 6651 6990 7101
7135 7175 7180 7510 7636
7684 7946 8129 8317 8406
8548 8601 8615 8872 9718
8th Prize- Rs. 100/- 0085 0288 0343 0396 0456
0638 0783 0802 0823 0921
0925 0949 0981 1357 1469
1535 1610 1735 1738 1774
2640 2682 2702 2755 2776
2829 2883 2925 2937 3012
3157 3202 3227 3234 3245
3286 3299 3473 3604 3632
3698 3868 3891 3948 3960
3985 4011 4119 4195 4374
4464 4626 4643 4711 4811
4828 5128 5184 5215 5728
5737 5876 6367 6509 6511
6724 7070 7125 7147 7252
7260 7332 7565 7625 7657
7799 7878 8048 8081 8131
8169 8201 8207 8278 8301
8351 8402 8603 8651 8829
8859 8915 9295 9442 9517
9548 9594 9669 9912 9955
The prize winners are advised to verify the winning numbers with the results published in the Kerala Government
Gazatte and surrender the winning tickets within 30 days.
Next Sthree Sakthi Lottery Draw will be held on 23/04/2019 at
GORKY BHAVAN, THIRUVANANTHAPURAM
Sd/-
SG Sarma
Deputy Director
Directorate Of State Lotteries , Vikas Bhavan,tvm

rfxsignals April 4, 2020 No Comments

Day Trading Made Simple: Trading The 30 Minute Bitcoin Chart

rfxsignals April 4, 2020 No Comments

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

Head & Shoulders Pattern

The head and shoulders pattern is a highly reliable reversal pattern that very often, once completed and confirmed will mark a major turning point in the market. The appearance of the pattern faintly resembles a head and shoulders outline hence the name.

​The head and shoulders pattern in the standard form is a bearish reversal pattern. The bullish sibling is called an inverted head and shoulders pattern.

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

For trading the pattern in the Forex market the implications, rules, and strategies work exactly the same for both the bullish and the bearish versions of the pattern, so everything can be used interchangeably only, of course in the opposite direction.
​The head and shoulders pattern is formed by three consecutive highs with the middle one being the highest of the 3, hence the resemblance of a head. The highs on each side of the head resemble two shoulders.

Entry rules:

  1. Identify a head and shoulders pattern as described.
  2. Draw the neckline by connecting the 2 lows of the head and projecting the line to the right.

    Note: The right low of the head must be higher or at least equal to the left low (the neckline must be sloping upwards or at least be horizontal, but it can’t be sloping down).

  3. Wait for a break of the neckline with a close below it.
  4. Enter after the breakout with a close of the breakout candle.

Do not enter on a breakout without at least waiting for a close below the neckline. A high number of potential head and shoulders patterns often will be broken only for it to be a fake breakout in the end. When price closes the trading session past the neckline it’s an additional confirmation that it’s a true breakout.

Initial Stop-Loss placement:

  • Behind the right shoulder (this is the ultimate stop out level)
  • Or behind the most recent swing high (for a tighter stop)

A head and shoulders on a USDJPY 15 minute chart

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

A head and shoulders on a USDJPY 15 minute chart
Trade management:
Price should not return and close back above the neckline of the head and shoulders pattern. If that happens the trade should be closed because the pattern is invalid under those conditions.

Note, however, that price can come back to the neckline, retest it and even trade above it during the session, but it should not close above the neckline.

Here’s an example of an inverted head and shoulders pattern. All the rules, entry points, stop levels and targets can just be mirrored from the classic head and shoulders.

An inverted head and shoulders pattern on EURUSD daily chart

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

An inverted head and shoulders pattern on EURUSD daily chart
Profit target:

  • Measure the height from the highest point of the head – down vertically to the neckline and project the measurement from the breakout point to right side of the chart (examples are shown in the charts above).
  • Always keep in sight of any key support or resistance levels ahead of the target that could stop price from reaching it.

Double Top and Double Bottom Pattern

The double bottom in the bullish case and the double top in the bearish case are classical reversal patterns that can often signal a significant shift in market sentiment, especially when the pattern occurs on a spike in volume and volatility. The pattern is formed by two consecutive equal highs for the double top and two consecutive equal lows for the double bottom pattern.

This pattern also uses a neckline which in a double top is the horizontal line projected from the low (lowest point) between the two tops to the right on the chart.

In a double bottom pattern, the neckline is taken from the high (highest point) between the two bottoms and projected to the right of the chart.

The rules, entry, stop out and target calculating principles work the same for both the bullish double bottom and the bearish double top patterns.

As with most chart patterns, the double top and bottom can be traded with a riskier – higher return approach and a more conservative – lower reward approach.

Entry rules:

  1. Identify a double bottom.
  2. Enter at the low of the second bottom on a reversal candlestick pattern on lower timeframes (riskier approach).
  3. Wait for the double bottom to be fully confirmed and the neckline to be broken to the upside before entering (conservative approach).

Initial Stop-Loss placement:

  1. Below the second bottom.
  2. Or below the most recent swing low (for a tighter stop but also more likely to be taken out).

Double bottom on AUDUSD 4h chart

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

Double bottom on AUDUSD 4h chart
Profit targets:

  • Measure the height from the neckline to the lowest point of the two bottoms and project the measurement from the breakout point to right side of the chart (examples are shown in the charts).
  • Note that key support or resistance levels ahead of the Profit-Target as always can stop price from reaching the target. That’s why it’s necessary to position accordingly if such a situation is encountered.

​Here’s an example of the bearish double top pattern. As can be seen, everything works the same as with the bullish double bottom pattern, only in the other direction.

Head and Shoulder, Double Top and Double Bottom Chart Patterns Strategy

Double top on AUDNZD 1 hour chart
rfxsignals April 4, 2020 No Comments

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

As you probably know by now, day trading is a preferable trading style for many traders over other approaches to crypto trading due to how it’s much faster when it comes to execution and profiting.

Besides that, short-term trading is where technical analysis really shines, which many traders find very precise and also entertaining.

Picture

When it comes to day trading, the extreme is scalping – trading minutes. And to that matter, we will go to the 1-minute BTC chart, which provides the most recent data when it comes to the candles!

The Advantages Of 1 Minute Charts

1-minute charts can be your best friend when your objective is to execute fast intraday trades. Due to its very nature, it will provide nothing but the most recent information regarding pricing, and you need to be able to identify chart and Price Action patterns that are relevant to such timeframes.

Another secret advantage is that 1-minute charts let you visualize a huge spectrum of price swings when zoomed out, which you can use for longer-term trades as well.

Scalping With The 1 Minute Chart

Let’s delve into the most obvious function of this timeframe: scalping.

Scalping requires you to be able to perform technical analysis quickly and in minutes. That is not suitable on timeframes higher than the 5-minute chart, so the 1-minute chart is normally the first choice for scalpers.

Let’s have a look at this:

Bitcoin scalping

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

That’s a textbook head and shoulders pattern. Now, notice the date and compare that chart with this 5-minute one. As you can see, the head and shoulders pattern wasn’t here – so we wouldn’t see this opportunity on the 5m chart. But still, on the 5m chart, it would be possible to trade the red Inside Bar pattern.

Or another great approach is to analyze higher time-frames (like 5m and above) and go in the direction of that time-frame, but open and time trade entries for example based on the 1m chart.

This is called MTF – multi-timeframe analysis – and it’s a very successful approach to trading that is applied by many professionals in the trading world.

You can read more about how that works in one of our Forex articles here.

Bitcoin 5-minute chart

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

Now that we’ve established that the 1-minute chart is the best timeframe for full-on scalping, how could you have traded that one opportunity?

bitcoin 1-minute chart trading

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

Easy:

  1. Wait for the full pattern to be verified – that is, wait for the second shoulder.
  2. As soon as it happens, locate your neckline. On this chart, I averaged it and marked it with a blue line (it’s also possible to draw the neckline by a trendline connecting both support levels of the shoulders – the neckline would be located around the same price level as the blue line on the chart).
  3. Wait for the price to break below the neckline – blue line. Thanks to the short timing, you can do this manually or place a BUY/SELL stop order.
  4. For S/L, locate the shoulder line and place it there (red line).
  5. For T/P, I always prefer to place T/P based on support /resistance zones. If there are no near S/R levels, you can use your S/L as a reference. For example, in this case, I gave it twice the size of my S/L.

As you can spot, following that standard procedure gave a nice $4 reward!

Extra: 1 Minute Chart For Longer Trades

A “hidden” way you can make use of the 1-minute chart is by zooming out as much as you can and identify trends with much more information been available to you.

Look at this view of a full trading day on a 30-minute chart:

crypto trading scalping

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

Fairly standard, right? Now, behold the same day on the 1-minute chart!

bitcoin scalping trading

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

A myriad’s worth of data more compared to the other 30-minute simpler chart!

Sure enough, this means that you need to process much more, so it may be less intuitive, but an experienced trader can get much more from the second chart than from the first one!

crypto 1-minute chart trading

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

bitcoin crypto scalping

1 Minute Bitcoin Trading Strategy: Mastering The Scalper’s Way

You can see how the downtrend shown at the beginning of the day looks a lot different on the two charts.

On the first chart, you can see how many times the trend reversed, which is a great indicator for determining when you should exit the trade.

On the other hand, the second chart also shows the same trend, but it lacks the information that you could’ve used to predict the ending point of the trend.

So, with all that said, I wish you much success and a lot of profits in your trading adventures!

Take care and trade well!

rfxsignals April 4, 2020 No Comments

The Triangle Pattern Forex Trading System

Triangles are chart patterns that most of the time form in sideways markets as part of the consolidative process. Although triangles tend to be broken in the direction of the previous trend (if there is a strong prior trend), it’s not a definitive rule and triangle breakouts can occur in either direction.

​In technical analysis there are 3 types of triangle patterns and trading each of the triangle patterns is similar, although there are some subtle differences between them.

Triangle Pattern Forex Trading System

​We will treat the symmetrical triangle as a slightly different kind, while the ascending and descending triangles are the exact same thing only in the reversed direction.

Symmetrical triangle

The symmetrical triangle most of the time forms following a sharp move during a trend and is an indication of a correction taking place. The direction of breakout is most often in the direction of the preceding trend and usually, it’s just a matter of when this breakout will occur. In this regard, the symmetrical triangle can be thought of as similar to the flag pattern, only with a different formation on the chart.

It forms when a rising support trendline and a falling resistance trendline converge into one another, hence price action gets squeezed into a tighter and tighter space awaiting a breakout.

As with most corrective patterns, price action inside of the symmetrical triangle tends to be choppy and highly unpredictable.

Entry rules:

  • Because it is a continuation pattern it can be a valid strategy to take a trade in the direction of the prior trend before the breakout of a symmetrical triangle occurs. But remember that this is a riskier strategy and appropriate protective measures should be taken such as a stop loss behind a key nearby technical level.
  • Waiting for the triangle to break in the direction of the trend is the classic way to trade this formation and it does have a higher rate of success. However, the downside of this approach is of course that you get to enter much later (at a worse price) and potentially give away a large portion of the profit.
  • If for some reason the symmetrical triangle is broken in the counter-trend direction then no trade should be taken.

An example of a symmetrical triangle on EURUSD 5m chart

The Triangle Pattern Forex Trading System

An example of a symmetrical triangle on EURUSD 5m chart
Initial stop placement:

  • If the trade has been initiated using the first approach (before the breakout occurs) then the stop loss should be placed a few pips behind the appropriate trendline (the upper falling trendline in a short trade and the bottom rising trendline in case of a long trade).
  • When trading the breakout stop-loss should be placed behind most recent swing high (in a downtrend) or swing low (in an uptrend).

Managing the trade:

  • Since the symmetrical triangle most often appears during trends, it is wise to utilize some kind of a trend-following strategy to manage the trade, like using a trailing stop.
  • If price returns back inside of the triangle after it broke out it means that it’s a fake breakout and the trade should be closed when this happens.

Profit targets:

  • Measure the height of the triangle at its starting point and project it from the breakout point to the right of the chart (from the breakout point).
  • Already existing important support and resistance levels must be taken into account for managing the trade and determining profit targets.

Ascending triangle

A chart formation where the resistance trendline is horizontally flat and the support trendline is ascending and converging into the flat resistance trendline, thus the name “ascending triangle”.

It can be a sign of continuation in an uptrend, but it’s very unlikely to form as a consolidation during a downtrend. In fact, in a downtrend, it will more likely signal the onset of a reversal and the start of a new bull trend.

Statistically, most of the time price breaks out of ascending triangles to the upside, though as anything in trading it’s not a definite rule and protective measures like stop loss orders should always be taken.

Entry rules:

  1. Identify an ascending triangle formation as described earlier.
  2. Wait for price to break out of the triangle.
  3. Enter when the candle closes outside of the triangle in a so-called “breakout on a close”.

In our example of the ascending triangle on the EURGBP 4 hour chart, the pattern appeared at the beginning of an uptrend. After the breakout, the price reached the first target (the width of the triangle) then paused before resuming the trend to reach the second target (2x the width of the triangle).

EURGBP 4h chart - Ascending triangle

The Triangle Pattern Forex Trading System

EURGBP 4h chart – Ascending triangle
Initial stop-loss placement:

  • behind the most recent swing high (in a bearish breakout) or
  • behind the most recent swing low (in a bullish breakout)

Managing the trade:

  • If price returns back inside of the triangle the trade should be closed.
  • If price struggles to reach the target for a prolonged period of time, then it’s prudent to fully or partially close the position.

Profit targets:

  • 1st target – Measure the height of triangle and project it to the right on the chart (from the breakout point).
  • 2nd target – 2x the height of the triangle.

As with any trading strategy, it’s crucial to be aware of key support and resistance levels on higher timeframes and make sure that no such obstacles lie ahead of the targets.

​Descending triangle

This chart pattern is formed by a resistance trendline which is descending (falling) and a support trendline which is horizontally flat. The name descending triangle comes from the descending price action that creates the triangle.

The price will most of the times break a descending triangle to the downside. This is mainly due to the selling pressure that tries to penetrate the horizontal support several times until it’s finally stronger and cracks it.

However, as we’ve said other times that is not always the case and descending triangles can be just as easily broken to the upside.

Entry rules:

  1. Identify a descending triangle formation as described earlier.
  2. Wait for price to break out of the triangle.
  3. Enter when the trading period closes outside of the triangle in a so-called “breakout on a close”.

In the following example on the USDCAD daily chart, price broke the descending triangle to the downside as is the case most of the time with descending triangles. However, instead of plunging down immediately price returned to the broken support trendline and “retested” it from below. This is not an uncommon scenario and it’s a great opportunity to enter the trade at a much more attractive price.

The Triangle Pattern Forex Trading System

USDCAD Daily chart – Descending triangle
Initial stop placement:

  • behind the most recent swing high (in a bearish breakout) or
  • behind the most recent swing low (in a bullish breakout)

Managing the trade:

  • If price returns back inside of the triangle the trade should be closed.
  • If price struggles to reach the target for a prolonged period of time, then it’s prudent to fully or partially close the position.

Profit targets:

  • 1st target – Measure the height of triangle and project it to the right on the chart (from the breakout point).
  • 2nd target – 2x the height of the triangle.

If there is a strong support or resistance level on the way to the target, the price might reverse even before reaching it. This is why it’s very important to make sure that there are no such obstacles in the way.


rfxsignals April 4, 2020 No Comments

USDCAD Price Action Trading Strategy

​USDCAD is another commodity currency pair that we will review in our series on the behavior of price action of the different Forex pairs.

​​​General characteristics of USDCAD

Widely known as the Loonie Dollar, CAD is also displaying the characteristics of a commodity related currency and is therefore usually driven by movements in commodity prices, mainly oil.

While related to a large degree to the other commodity currencies (such as AUD and NZD), the Canadian Dollar tends to behave in a rather different manner on the charts compared to the Aussie and the Kiwi Dollars. One of the reasons for that probably has to do with the fact that, first of all, the Loonie Dollar is primarily correlated with a different commodity (oil) compared to metals and dairy products as is the case for the Australian and New Zealand Dollars.

But, additionally, the Australian and the New Zealand economies are closely linked to each other on a trade basis as the two countries do a lot of trade between each other and as a result, their currencies are also intrinsically closely correlated. However, the largest trading partner of Canada is the United States and from this aspect, the Canadian Dollar also has some positive correlation with the US Dollar. This largely explains the slow and rangy price action that can be quite commonly seen on the USDCAD pair, as is often the case with pairs comprised of currencies that are closely correlated.

USDCAD price action trading forex

USDCAD Price Action Trading Strategy

Price spikes in both directions are common on USDCAD. Unlike what is usual for most other currency pairs where a large candle indicates strong momentum, on USDCAD these can be often completely reversed. The smallest candle indicated with an arrow on the above chart is about 60 pips tall, while the biggest one is a whopping 150 pips – USDCAD 4-hour timeframe

​USDCAD price action

Like its commodity-related cousin currencies, namely AUD and NZD, the Canadian Dollar also often forms channels across its different timeframes. A key difference between CAD compared to AUD and NZD is that the price action on USDCAD is generally not as orderly as on AUDUSD or NZDUSD.

Irregular price moves can be quite frequent on USDCAD The price often tends to move in a rhythm of large candles (price spikes) followed by small candles and then another large spike. However, it doesn’t mean that the USDCAD pair is often trending. In fact, the price spikes can quite frequently go in both directions right next to each other – making it rather troublesome for technical analysts to determine the right direction of the pair (see the first chart above). This also makes USDCAD somewhat unsuitable for trading some strategies, like for example, breakout trading.

Trading breakouts on USDCAD can be frustrating as often times a breakout turns out to be a plain fake breakout. The USDCAD pair is probably one of the most unreliable major currency pairs when it comes to trading breakout strategies. Situations, where the price breaks out above or below an important technical area, are highly inconstant and, instead, very often fake outs are a reality on the charts of the USDCAD pair.

Of course, while breakouts can certainly offer good trading opportunities even on USDCAD, the chances of it turning into a fake-out are rarely worth the risk. It is better to seek extra-confirmation whenever a breakout on USDCAD occurs as a way to confirm the validity of the breakout before looking to enter a trade.

USDCAD Forex fakeouts breakouts fake

USDCAD Price Action Trading Strategy

While the breakout above the rectangle area might normally seem like a great trading opportunity, it’s not quite the case with USDCAD. Not only it was a fake-out, but the pair also returned in the range afterward and then broke below the support (in a way, a double fake-out) before finally turning higher again. USDCAD 4-hour chart
​So, if breakout trading is not the best option for USDCAD, let’s see what the best ways to actually trade this pair are.

​​​Trading USDCAD:

Long trade entry:

  • Trading channels and support/resistance zones seem to be among the best trading tools/strategies for the USDCAD pair.
  • So entering long at support trendlines can offer good trading opportunities. But, the fact remains that sometimes a specific trendline will be broken before the support holds, and this can make it challenging to trade USDCAD on a purely technical basis.

Long trade stop loss:

  • It’s best to allow a good amount of breathing room for the stops as support and resistance tend to work more like zones rather than precise levels on USDCAD.
  • Due to the common spiking price action, placing stops can be tricky on USDCAD. Particular because of the frustrating experience of the market grabbing your stop and then taking off higher without you.

Long trade exit and targets:

  • It’s best to place targets at important technical resistance areas such as previous major highs, Fibonacci extensions and even key round numbers.

USDCAD trading support resistance price action

USDCAD Price Action Trading Strategy

Ranges can offer good buying opportunities at support areas. The typical large candles (spikes) followed by small candles can also be seen on this chart – USDCAD 4-hour timeframe
Short trade entry:

  • Look to sell on completed bearish signals at resistance zones or falling resistance trendlines if the price is trading inside of channels.

Short trade stop loss:

  • Look to place stops above the upper range of an important resistance zone. The price may often rise to test pivot points or round numbers before finally reversing on a resistance zone, so it’s important to allow “breathing room” in the stops.

Short trade exit and targets:

  • Look to target support zones such as important previous lows on large timeframes, Fibonacci confluence zones or round number price levels.

USDCAD price action trend trading channels swing

USDCAD Price Action Trading Strategy

Channels form frequently on USDCAD, so selling at the channel’s resistance can also be a successful strategy. Instances of tall candles in one direction followed by tall candles in the opposite direction (as retracements) are also evident in this downtrend here – USDCAD 1-hour chart

​Common behavior of USDCAD on the charts

Large price spikes caused by news releases are common on USDCAD also. However, it’s also not rare for those spikes to be completely reversed in the opposite direction after a short period of time. Such reversals of tall spiking candles can even represent major highs or lows even on large timeframes and hence momentum trading strategies based on such patterns seem to be rather unsuitable for trading USDCAD.

While channels do form frequently, they are rarely distinct with clear-cut support and resistance trendlines, as is more so the case on other currency pairs (e.g. AUDUSD and NZDUSD). Rather the trendlines often tend to be overshot by the price.

So, in this regard, it is probably better to only view such chart formations as approximate guides for where the market is generally headed rather than clear levels to take trades. Because many times on the USDCAD pair, placing a stop behind the resistance or support trendlines can result in the stop being taken out and then the market continuing in the desired direction – usually resulting in big frustrations for the trader.

rfxsignals April 4, 2020 No Comments

EURJPY Price Action Forex Trading Strategy

EURJPY Price Action Forex Trading Strategy

EURJPY is another Forex pair that is high on the list of “proxy” currency pairs for the risk sentiment in markets. The two currencies that comprise this pair, the Euro and the Yen have different roles in the Forex market. The Japanese Yen is considered a safe haven currency while the Euro has a status of a risky currency. As a result, when risk appetite is driving markets EURJPY tends to rise in an uptrend by default and when risk aversion kicks in as a general rule the EURJPY pair will switch to a downtrend.

This dynamic of being on the opposite side of the risk sentiment spectrum very often creates a lot of volatility and powerful trends on this pair. Indeed, EURJPY is one of the most volatile and most trending currency pairs in the Forex market. This provides many excellent trading opportunities but can also be a source of a lot of trouble for Forex traders.

Despite being one of the most trending currency pairs trading the EURJPY pair is far from easy as the high volatility can contribute to some frustrating experiences for Forex traders. On intraday charts, volatile price swings are a normal and expected occurrence – often in both directions, up and down. Retracements can be sharp and sudden and often scare-off many traders after which the previous trend resumes anyway

EURJPY price action trading forex

EURJPY Price Action Forex Trading Strategy

Although EURJPY is trending on this chart, instances of huge spikes in volatility (marked with the blue arrows) can still be seen here – EURJPY 1-hour chart

​​​​Some characteristics of EURJPY

In many ways, EURJPY behaves similarly to GBPJPY regarding the volatility and the nature of the price action due to the close correlation between the Pound and the Euro. Trends do develop often, but that is not to say that traders should be complacent and forget about a position once they’ve joined a trend. Like GBPJPY, the market can quickly take what it has given on the EURJPY pair as well. Staying vigilant at all times can go a long way into helping to trade this pair better.

The formation of distinct and text-book like patterns on the charts of EURJPY is not so common. The price action tends to be irregular quite often and in fact, if any patterns or formations like head and shoulders, channels or trendlines do occur, they are likely to be slightly distorted and the support and resistance levels not distinctly respected at each touch of the price. Conducting technical and price action analysis on this pair compared to some of the major pairs is slightly different due to this aspect.

Support and resistance levels work well and are respected most of the time even on intraday charts, but the price reactions are rather unpredictable.  Sometimes this pair can reverse sharply at a support or resistance area and travel great distances in the new direction while other times it may stay in range at support or resistance for prolonged periods of time before choosing a direction.

Generally, the EURJPY currency pair is better suited for momentum trading where a trader is looking to take a slice of a market move and make quick profits rather than trying to pick exact tops and bottoms or trying to ride a trend from start to finish.

​​Trading conditions:

Long trade entries:

  • Instances of volatile price action that result in chart patterns or trading signals tend to produce good results. For example, if a bullish candlestick pattern is formed on volatility that is twice as large as the usual volatility for that period of time is more likely to result in a continuation of the bullish move compared to a bullish pattern that is formed on volatility that is half of the normal volatility.
  • The classic combination of a solid support zone accompanied by a bullish signal tends to work well for long entries on EURJPY as well. Due to the high volatility of this pair, however, shakeouts can be common with the price dipping below the support before continuing higher.

Long trade stop loss:

  • Hiding the stop behind a support zone that has been created on high momentum bars/candles tends to work the best. Generally, levels below support that has been tested and confirmed several times or that has been created after a momentum breakout is a good place to position a stop loss order.

Long trade exits and targets:

  • Aiming to make quick profits on a momentum driven move with profit targets toward the nearest resistance zone to the upside tends to work well on EURJPY.

EURJPY trading strategy profit momentum

EURJPY Price Action Forex Trading Strategy

A tall bullish candle puts a bottom which is then confirmed on a volatile bullish breakout (blue arrow). The dotted line indicates an important technical area which was resistance in this case and the price later reached it. – 1 EURJPY 1-hour chart
Short trade entries:

  • Traders who learn how to exploit the volatility, the risk sensitivity and the trending behavior of this pair will do well in trading it.
  • Due to the risk sensitivity of this pair, the price can fall quickly and far and as a result, can often reach oversold levels. The main risk in joining such moves is entering too late after the move has already run its course and the market has already started to reverse the direction.
  • Bearish trading signals that are accompanied by tall volatile candles are a good sign that a top has been put in place, at least in the near-term if not a full-scale reversal of trend. Solid bearish signals of this type that form at a verified and strong resistance area are even more likely to provide good trading opportunities.

Short trade stop loss:

  • Consequently, it’s best to place the stops slightly above such key resistance zones.

Short trade exits and targets:

  • Early signs that a downtrend might be ending should be taken note of and acted on especially if they appear at an important intraday support area. Fibonacci extensions and retracements can also be sued to take profits as soon as the price has reached such an area.
  • As discussed throughout this article, when it comes to trading the EURJPY pair, most of the time it’s better to not be too greedy and take what the market has given you early rather than holding a position for longer betting on bigger profits.

EURJPY short selling trading risk off risk aversion

EURJPY Price Action Forex Trading Strategy

The tall candle on the left (arrow on the left side) was rejected and several attempts to move higher later were rejected also. This showed that the bulls were losing control in this area and that a bearish signal here should be a good selling opportunity (arrow on the right side) – EURJPY 4-hour chart

EURJPY is correlated with USDJPY and EURUSD

A large amount of volume is traded on the EURJPY pair even though it’s not one of the major Forex pairs. Hence, sometimes movements in EURJPY can precede and even cause movements in major currency pairs such as EURUSD and USDJPY.

Analyzing the EURUSD and USDJPY pairs separately and then combining that with an analysis of EURJPY is also helpful for trading this pair. Technical levels and patterns that appear in EURUSD or USDJPY also affect the EURJPY pair. Taking note of what is happening on these major pairs as well can give additional insights for EURJPY.

rfxsignals April 4, 2020 No Comments

USDCHF Price Action Trading Strategy

​​​​Characteristics of USDCHF

USDCHF is another major currency pair that is closely tied to risk appetite and risk aversion in the markets. The price behavior is often affected by it and traders who intend to trade the USDCHF pair should keep these risk sentiment related factors in check.

Volatility is normally low on USDCHF compared to other Fx pairs, usually around 50-60 pips, but can rise significantly in times of risk aversion. USDCHF can rise and fall very fast under specific conditions, for example, either risk aversion or risk appetite taking control in the market. Frequently there will be periods of calm low volatility type of price action with sudden increases in this volatility and then a reversal back to low volatility.

Unlike USDJPY, however, USDCHF is not so closely correlated with US or global stock markets. Instead, it tends to be somewhat more reactive to risk-averse instances driven by European woes rather than crises happening elsewhere.

USDCHF risk appetite and risk aversion

USDCHF Price Action Trading Strategy

Typical risk-on rallies are also a common occurrence on the USDCHF charts. This type of slow and steady appreciation can rarely be seen on other currency pairs that are not related to risk sentiment. – USDCHF 4-hour chart
It is not typical for USDCHF price action to distinctly respect support and resistance zones, although they can work quite well when regarded as wider zones rather than exact levels. Overshoots of these zones are fairly common which can result in occasional fake breakouts. This can make the pair somewhat difficult for trading, but once one gets used to it and practices trading it for a while it’s fairly easy to get in tune with the usual price behavior even on a pair like USDCHF.

Bullish and bearish patterns or trading signals that were generated on high volatility, particularly on higher timeframes such as the daily or weekly, tend to be more significant and should be taken as more important compared to signals generated on very low volatility. In fact, fake-outs are more likely if a breakout occurs on lower than normal volatility.

Trendlines and channels are not the most reliable tool, and in fact are rarely defined clearly on the USDCHF charts. Similarly to horizontal support and resistance zones, sloping trendlines also tend to work more like wider zones rather than specific levels. For these reasons, trendlines and channels on the USDCHF pair should be traded carefully as their existence is not a guarantee that they will be respected by the price.

Round numbers also have a tendency to be respected often, especially on intraday charts where this is even more evident. Hence, round numbers can be regarded as support and resistance levels that can give us important insights into which technical levels we need to pay attention to.

Finally, trading the CHF, one always has to be aware of the possibility of central bank intervention (SNB intervention). Read more on this in the article on EURCHF here.

Now, let’s get into some common entry patterns or signals that appear on USDCHF.

​​Trading USDCHF:

Long trade entries:

  • Look to enter on bullish signals at already established support areas or to join bullish trends on increasing bullish momentum. USDCHF can very often start an uptrend at a slower pace and then progressively accelerate higher. Momentum oscillators such as the MACD can help in determining the momentum behind a move.
  • Timing the move is also an important aspect here. It happens quite often for the trader to be right about the direction in which the pair will move but if he enters too early or too late then the trade still won’t profitable trade.

Long trade stop loss:

  • Place stops behind key technical levels such as support or Fibonacci retracements. It’s good to aim for tighter stops on this pair as moves can quickly and rather suddenly reverse, so most of the time it is a good risk management strategy to protect positions early.

Long trade exits and targets:

  • Round numbers to the upside and resistance zones are good places to look for profit targets. On the example below, we can see how USDCHF stopped almost exactly at the 1.00 round number level.

USDCHF price action trading

USDCHF Price Action Trading Strategy

USDCHF Daily chart – The 0.9450 support zone was tested 3 times after which USDCHF started an uptrend. There was solid momentum on the last 2 bearish attempts at this support which provided good opportunities to buy. On the right side, the momentum breakout above the 0.9800 resistance zone (marked with the circled area) indicated that momentum will accelerate and USDCHF indeed reached the 1.00 round number level
Short trade entries:

  • Risk-off driven bearish moves can provide excellent trading opportunities as the momentum can be strong, but also often times, those instances could end up being a trap. Especially, one needs to be careful to not enter momentum short trades too late (aka selling at the bottom). On many occasions, the move will stop just as it looks that all hope for any bounce is lost and then reverse all of the losses.
  • Bearish signals that confirm resistance zones are a relatively good bet here also as are decisive breakouts below important support zones.
  • But again, it pays to find out what’s causing a sell-off in a risk-sensitive currency pair, since the behavior can differ when it’s being driven by risk aversion compared to other factors.

Short trade stop loss:

  • Look to place the stops above Fibonacci retracement levels, key resistance levels, and round numbers. Intraday breakout points for momentum trades will also hold most of the time if the bearish move is to continue for real.

Short trade exits and targets:

  • Support areas lower as well as key round numbers are likely to provide stopping points for the price in most cases and hence are good price areas to take profits at.

USDCHF strategy trading forex price action

USDCHF Price Action Trading Strategy

USDCHF makes a U-turn – not an uncommon situation for this pair in both bullish and bearish occasions. The Master MACD indicator picked the reversals accurately – USDCHF – 4-hour chart
rfxsignals April 4, 2020 No Comments

EURCHF Price Action Trading Strategy

​​​Characteristics of EURCHF

Much like the JPY currency pairs, it is nearly impossible to talk about the Swiss Franc or CHF pairs without mentioning its safe haven characteristics and the long-standing relation between risk sentiment in financial markets and the Swiss currency.

The Swiss Franc also has the desirable characteristics of a safe haven asset or currency like the Japanese Yen and the US Dollar. Any CHF currency pair in the Fx market, therefore, has a strong relationship with the general risk sentiment across markets. The typical behavior is a depreciating Swiss Franc (CHF pairs rising) in a risk appetite environment and a strengthening Swiss Franc (CHF pairs falling) in a risk-averse (risk-off) market environment.

As a result, EURCHF, to some degree, also behaves as a proxy currency pair for risk in the markets. The EURCHF pair tends to rise more gradually when risk appetite dominates and it tends to decline at a more aggressive pace when risk aversion is in the driving seat. When trading safe haven currencies this a usual behavior that one can expect and although there can be long periods of risk appetite and rising markets, traders should not be complacent because risk aversion can kick in suddenly.

When we talk about EURCHF we also have to note that we are talking about a currency pair comprised of two correlated currencies. The Euro and the Swiss Franc, being the currencies of two neighboring economies tend to be naturally correlated as their economies are closely linked to each other.

EURCHF price action trading

EURCHF Price Action Trading Strategy

The usual gradual and rangy behavior of the price action can be seen on this chart – EURCHF 4-hour timeframe
The price action on EURCHF is, therefore, most often gradual compared to some of the major and more volatile currency pairs although, as we noted earlier, somewhat more gradual in uptrends than in downtrends due to the risk sensitivity of the pair.

​As is often the case for Fx pairs comprised of two correlated currencies (with neighboring linked economies), the Euro/Franc exchange rate can also stay in ranges for prolonged periods of time. By the same token, the pair also tends to thoroughly test a certain technical area multiple times before moving on either higher or lower.

Support and resistance areas such as horizontal highs and lows as well as sloping rising or falling trendlines work well on EURCHF overall. Breakouts of such support/resistance zones normally result in continuation and fadeouts are not a common thing. Hence, trades taken based on a clear-cut trendline or a distinct horizontal support or resistance zone are likely to provide good results when trading the EURCHF currency pair.

Another common pattern on EURCHF is that the pair can often reach round numbers and reverse at the exact round numbers, such as for example, 1.2000 or 1.1500. That’s not to say that necessarily a sharp and complete reversal will occur at round numbers, but EURCHF often respects them at least in the shorter-term, like the daily and intra-day timeframes.

Round numbers commonly act as support or resistance across the different Forex pairs, but still, there are enough instances supporting the notion that this is more pronounced on the charts of the EURCHF pair compared to other currency pairs which have a smaller consistency of this effect.

​Trading conditions:

Long trade entries:

  • Look to enter on bullish patterns or signals at important technical areas including horizontal and trendline support. Rising support trendlines usually provide good entry points and EURCHF can often trade in rising channels.
  • Channels provide excellent trading opportunities as technical entries, stop loss and profit target levels are clearly known in advance.

Long trade stop loss:

  • Look to place the stops behind key support areas. Although support levels may be tested frequently by the price before a push higher, if the bullish move will continue support will probably hold, so it’s a prudent place to put a stop at.

Long trade exits and targets:

  • Target important technical (resistance) areas higher. Pivotal resistance highs are also normally respected on EURCHF, so taking profits at such points is likely to prove a profitable strategy.

EURCHF trading strategies

EURCHF Price Action Trading Strategy

The pair rallied supported by the rising trendline, then reached the 1.2000 round number level precisely and fell from there. The downside breakout below the trendline signaled that a stronger bearish move could occur – EURCHF 4-hour chart
Short trade entries:

  • Breakouts below key support areas usually precede quick and fast declines in the price, so these instances should be considered for entering potential short positions. A break of a rising support trendline is also normally a solid bearish signal for EURCHF.
  • Analyzing the market with core concepts of technical analysis in this way is a solid approach to find good trading opportunities on this pair.

Short trade stop loss:

  • Place stops above the bearish breakout points and distinct resistance areas on the charts. Additionally, EURCHF can commonly come back to a broken support level to retest it and that can provide a second chance to enter or even a better opportunity to sell and place a better stop loss order.

Short trade exits and targets:

  • Targets toward key support areas and round number psychological levels are generally good technical points to take profits.

EURCHF trading strategy patterns price behavior

EURCHF Price Action Trading Strategy

In a similar pattern as on the previous chart, EURCHF first broke the rising support trendline, and then the breakout of the horizontal range to the downside signaled the acceleration of the sell-off – EURCHF 4-hour timeframe

Don’t forget about SNB interventions

Another important aspect that must be discussed when talking about the Swiss Franc is central bank interventions. It wasn’t that long ago when we witnessed massive exchange rate moves in CHF pairs of over 1000 pips, (yes one thousand) in a matter of hours due to the actions and interventions of the Swiss National Bank (SNB).

Leaving the fundamental reasons aside, when it comes to technical analysis and price action trading, the SNB interventions caused massive disruptions in the charts on the EURCHF pair. Such instances when authorities directly intervene in the Forex market can make it harder to apply and make sense of the regular technical analysis tools and price action trading methods. For these reasons, many Forex traders completely abandoned the EURCHF pair (and other CHF pairs also) during the years when the SNB controlled the EURCHF exchange rate through the implementation of the 1.2000 floor.

Although in recent times the pair has reestablished its old “more normal” behavior to a large degree, still the possibility of interventions and the large spikes in the price action that the SNB can cause are still in the back of all CHF Forex traders.

rfxsignals April 4, 2020 No Comments

NZDUSD Price Action Trading Strategy

​The next commodity Fx pair that we will look at is NZDUSD as part of our series on the characteristics of price action of the major Forex pairs.

​​Characteristics of NZDUSD

The closest cousin of the AUDUSD pair, NZDUSD is highly correlated with AUDUSD. Its trading characteristics and the behavior of price action on NZDUSD are therefore very similar to the ones seen on the charts of AUDUSD. The price generally moves in orderly steps especially on the larger timeframes such as 4-hour, daily and higher, although fake breakouts can occur from time to time.

NZDUSD most of the time trades in a swingy fashion. That is the price tends to move in swings which is probably what makes the pair very well suited for swing trading. The quite often and frequent formation of trendlines and channels further strengthens the swing trading characteristics of the NZDUSD major pair, but also of other NZD pairs too.

NZDUSD price action swing forex trading

NZDUSD Price Action Trading Strategy

NZDUSD often trades in swings, forming trendlines and channels in the process – NZDUSD 4-hour chart
​This means that like AUDUSD, NZDUSD also retraces much of the moves, either up or down. Trendlines hold generally well. When a trendline that has held for a while is broken it’s a solid signal that the trend has reversed. Horizontal support and resistance also work well but are also overshot by the price sometimes (meaning the price can first push through them before reversing later). Fibonacci retracements and extensions ratios and patterns based on the Fibonacci levels such as the Harmonic patterns also tend to work very well on NZDUSD.

​​Trading conditions:

Long trade entry:

  • Look to catch the bullish swings at either good support areas or on breakouts above clear resistance levels (either trendlines, channels or ranges). Trendline support also works very well for joining bullish swings and bullish trends so traders should seek to take advantage of this when trading the NZDUSD pair.

Long trade stop loss:

  • Look to place the stops below the key distinct support zones after joining a trade. If a clear-cut support is broken (such as a rising trendline) then the long trade will most likely not work anymore as the trend would have probably reversed at this point.

Long trade exit and targets:

  • Target resistance areas to the upside as well as Fibonacci extensions/retracements. Taking some profits when a resistance or Fibonacci area is reached is generally a good strategy when trading NZDUSD since the pair retraces the moves frequently.

NZDUSD channels trendlines forex trading

NZDUSD Price Action Trading Strategy

Text-book like channels and trendlines are quite common on NZDUSD. This particular channel offered many good bullish opportunities to join the trend – NZDUSD 4-hour chart
Short trade entry:

  • ​Look to sell rallies (retracements) during downtrends and downswings. This can be done either at falling trendlines or key classical resistance and Fibonacci resistance zones.

Short trade stop loss:

  • Placing stops above key resistance zones works well. Once NZDUSD breaks a rising or falling trendline it will usually continue to travel in the new direction for a while before pausing. Thus, selling at resistance and placing the stops behind the resistance can offer great risk-reward trades.

Short trade exit and targets:

  • Target support zones and Fibonacci extensions/retracements to the downside. Most of the time support will be at least respected temporarily before being broken.

Trends NZDUSD forex trading trending

NZDUSD Price Action Trading Strategy

Channels like the one shown above frequently appear on the NZDUSD charts. A “selling at resistance” strategy provides excellent opportunities to profit during a falling channel – NZDUSD 1-hour chart

​Some of the typical behavior of NZDUSD on the charts

  • Many that hold true on AUDUSD are also true for NZDUSD. In this regard, due to the close correlation with AUDUSD, very often NZDUSD can rise or fall in tandem with AUDUSD without any NZD specific news and vice versa.
  • NZDUSD like the other commodity currencies (AUD and CAD) is affected by commodity prices, but in the NZD case, the main commodities that affect it are dairy and milk prices. The GDT Price Index which is released twice per month is the most watched economic data when it comes to the Kiwi currency. However, due to its correlation with the other commodity currencies, NZD can also trade on general commodity trends and trends in commodity currencies. So, staying generally updated with movements in commodity markets is also important when trading the NZD currency and the NZDUSD pair.
  • Also similar to AUDUSD. NZDUSD can also be sensitive to economic data released from New Zealand during the Asian overnight session. Dry liquidity during the Asia-Pacific trading session combined with big misses in economic data can cause large price spikes on the chats of NZDUSD. Due to the close connection between the Australian and the New Zealand economy, the NZ Dollar also reacts to economic data released from Australia. But again, like in the case of AUDUSD, price spikes during the Asian session are often fully reversed and by themselves can often mislead traders in the wrong direction.

  • The pair very often trends but the pace and slope of the price action is gradual. Like AUDUSD, most of the moves within the trend are retraced partially – offering nice trading opportunities to join the trend. Trendlines and channels are highly reliable technical tools to use for this on the NZDUSD currency pair as we discussed earlier.
rfxsignals April 4, 2020 No Comments

USDJPY Price Action Trading Strategy

USDJPY Price Action Trading Strategy

Whenever we are discussing the Japanese Yen and its trading characteristics in the Fx market, the first thing that comes to mind is risk sentiment. The USDJPY pair is the major Fx pair that is most famous for its sensitivity to risk. Risk on and risk off changes in the market are often the main drivers of the USDJPY exchange rate.

Risk appetite drives this currency pair up and a risk aversion mood can quickly send it tumbling lower. For the same reasons, USDJPY is also most of the time positively correlated with US stock indices such as the S&P 500 and with US bond yields such as the 10-year treasuries.

USDJPY is usually not the most volatile currency pair in Fx. In fact, it is one of the least volatile major currency pairs which makes it suitable for trading some specific strategies. However, its volatility can change suddenly due to risk-on – risk-off changes in market sentiment which can lead to sharp and unpredictable movements in some situations. During times of risk aversion, the volatility of USDJPY rises substantially. The good news is that these situations where the markets are falling can also be profitable for Forex traders.

The price action on USDJPY is generally gradual. Reversals can be sharp but most often they happen at an already established support or resistance zone and often come in the form of some pattern such as double top/bottoms, head and shoulders etc. This pair can trade in a sideways market often and for prolonged periods of time.

USDJPY price action trading forex

USDJPY Price Action Trading Strategy

USDJPY 1-hour chart – Normal volatility is low and support/resistance hold well. However, the volatility of USDJPY increases significantly when important fundamental news is released!
The risk sensitivity causes the USDJPY price action to behave in a way similar to stocks – meaning the price is rising slowly in uptrends but comes down quickly in downtrends. This has to do with the fear effect of markets and how panic causes prices to come down more quickly than optimism causes them to rise. In this regard, although correlated with global stock markets in general, USDJPY is most closely correlated with US stocks.

When considering these USDJPY behaviors, it’s important to be aware of the reasons for the trend. If it’s caused by global factors (such as stock markets falling or major countries entering a recession) then the above-described behavior is likely to prove true. But, currencies are often driven by central bank policies and other events as well, so in such cases, USDJPY could also rise just as quickly and powerfully due to reasons other than risk appetite (the BOJ quantitative easing program starting in 2013 is an example of this).

Trading USDJPY:

Long trade entries:
There are 3 typical situations that often occur on USDJPY which provide bullish trading opportunities:

  • Support/resistance zones and breakouts tend to work well in USDJPY. Thus, look to enter at established support zones on confirmation signals such as a bullish pattern or other bullish signals. You can also use the break, re-test continuation strategy on USDJPY quite successfully to trade breakouts. You can read more about it here.
  • The other situation that can work well for taking long trades on USDJPY is to buy a dip after a sharp sell-off on a strong bullish reversal candlestick. As discussed earlier sharp sell-offs in USDJPY are usually triggered by a risk-off event in the market, but after the dust settles USDJPY often reverses the bearish move fully – providing great buying opportunities. You can use this strategy explained here quite successfully to exploit sharp reversals in USDJPY.
  • Joining established trends in USDJPY can also work well in a risk-on environment. Once bullish trends start they can last for quite a while– allowing many traders to profit on the move. Uptrends usually progress at a steady pace for days without a big retracement. Sometimes, for these reasons it can be difficult to find a dip to buy in USDJPY, hence looking to just join in can be a better approach in such situations.
Long trade – stops and targets:
Placing stops and targets very much depends on the reasons for entering the trades and whether USDJPY is trending or ranging in that situation. Usually, it’s best to place stops behind a strong support area and target an important resistance to the upside.

USDJPY risk on bull trend

USDJPY Price Action Trading Strategy

USDJPY 1-hour timeframe – Typical risk-on bullish price action on USDJPY intraday charts
Although the acceleration in the middle of the chart looks sharp, the tallest candle is about 27 pips only, which is very low compared to highly-volatile days in Forex. Also, notice how there is almost no big retracement in the whole move from left to right which can leave dip-buyers frustrated.
Short trade entry:

  • Breakouts of important support levels rarely occur without a strong reason. It will be either JPY strength (usually due to risk-off) or USD weakness. In either case, fake-outs are not frequent on USDJPY, so once a bearish breakout has occurred further continuation is likely.
  • Look to join accelerating bearish momentum. Risk aversion is the most often cause of sharp bearish moves in USDJPY, but often such moves don’t last long. Hence, it’s wise to be quick and take profits as soon as some support area or the bearish target is reached.
  • When downtrends gather momentum the price action exhibits the typical characteristics of a trending market, so trend-trading strategies can be used to join. Bearish trends on USDJPY, however, tend to be more volatile and faster than bullish trends.

Short trade – stops and targets:
Look to place stops above a resistance area, or if it’s a trending market trailing the stop lower would also be an appropriate risk-management strategy. Key support areas lower can be used as targets.

USDJPY Forex price action risk aversion

USDJPY Price Action Trading Strategy

USDJPY 1-hour chart – Risk-off downtrends tend to be much steeper and much more volatile on the USDJPY pair

Conclusion

The intraday charts that are presented in this article shown the nature of USDJPY price action in different situations. These differences in USDJPY price behavior have been in existence for a long time and are likely to stay for longer as well.

Due to the nature of the currency pair and the fundamentals that underpin it different trading strategies can be used successfully. USDJPY is affected by all the usual factors that currencies are affected and additionally by risk sentiment. In many ways, trading price action on USDJPY requires to be aware of the fundamental reasons that caused the price to move.