News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • USD strength present throughout the NY session, but the US Dollar Index continues to find stiff resistance at the 94 level $USD $DXY
  • Euro is down more than 0.2% against the US Dollar since the start of the week with EUR/USD trading just above support heading into the European Central Bank interest rate decision tomorrow. Get your $EURUSD market update from @MBForex here:
  • Nasdaq 100 is not sure whether it wants to close at a record high, but the NDX-SPX ratio has jumped sharply today on the tech index's 0.9% rally
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.33% Silver: 0.05% Oil - US Crude: -0.05% View the performance of all markets via
  • The recent AUD/JPY rally appears to be stalling below 86.000, with the pair relatively flat on the session $AUDJPY
  • #Euro Technical Forecast: $EURUSD Pressured into #ECB- Breakout Levels -
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.05%, while traders in USD/JPY are at opposite extremes with 73.98%. See the summary chart below and full details and charts on DailyFX:
  • A day full of meetings and I've always had one eye fixed on this $GOOG rally. Last nights afterhours reticence didn't do this stock (and MSFT) justice. Impressive
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.29% US 500: 0.22% France 40: 0.19% Germany 30: 0.13% Wall Street: -0.16% View the performance of all markets via
  • RT @DeItaone: *Natural Gas Jumps 4.3% to Session-High $6.134 Ahead of Contract Expiration
Learn Forex: Scalping Short Term Forex Momentum

Learn Forex: Scalping Short Term Forex Momentum

Walker England, Forex Trading Instructor

Article Summary: The EURJPY has advanced 999 pips from the December low. As trading opens for 2013, short term market momentum can be used to identify fresh Forex scalping opportunities.

Trading short term trends in the Forex market relies heavily on identifying momentum. Regardless of the scalping strategy we ultimately end up trading, it is always important to determine if we are looking to buy or sell a currency pair prior to proceeding with our technical analysis on shorter term time charts. Today we will review the ongoing EURJPY trend and see if there is an opportunity for continued upside momentum.

The EURJPY has continued to be an excellent choice for scalpers since we last discussed its movements on December 5th. Looking back on the 4Hour chart below, the EURJPY has advanced in price as much as 999 pips from its December 2012 lows. With price now breaking higher highs to start 2013 trading, we will turn to our Building Blocks to find the key points in momentum for scalping opportunities.

Learn Forex – EURJPY 4Hour Trend

Learn_Forex_Scalping_Short_Term_Forex_Momentum_body_Picture_2.png, Learn Forex: Scalping Short Term Forex Momentum

(Created using FXCM’s Marketscope 2.0 charts)

EURJPY Building Blocks

Pictured below we can see our current Building Blocks for the EURJPY updated through todays pricing on a 30 minute graph. The analysis for Block 1 began on Wednesday December 26th. From this point the market made a seemingly one way move, advancing as much as 293 from its Block 1 low at 111.75 114.68. From this point the market slowly advanced confirming market momentum to the upside by printing a Block 1 high at 107.65.

As we have previously discussed, strong trends must have price in both Building Blocks heading in the same direction. Our analysis reveals that the standing low on the EURJPY resides inside of Block 2 at 113.10, which is considerably higher than the low found in Block 1. With both a higher high and a lower high being printed, Block 2 is indicative of strong continued upside momentum.

Learn Forex – EURJPY Building Blocks

Learn_Forex_Scalping_Short_Term_Forex_Momentum_body_Picture_1.png, Learn Forex: Scalping Short Term Forex Momentum

(Created using FXCM’s Marketscope 2.0 charts)

With both building blocks in the graph above painted blue and price pointing higher, the short term trend for the EURJPY remains upward. With the current direction of momentum identified scalpers will look to buy the EURJPY on future market advances. Alternative scenarios include a breakout under the Block 2 support, residing at its low at 113.10. A move below this point would conclude the EURJPYs current bull run,while temporarily changing the trading bias on the EURJPY.

---Written by Walker England, Trading Instructor

To contact Walker, email . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to .

Been trading FX but wanting to learn more? Been trading other markets, but not sure where to start you forex analysis? Register and take this Trader Quiz where upon completion you will be provided with a curriculum of resources geared towards your learning experience.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.