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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Q7TcbrYXjl
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/yxymjCHti6
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/yZzArpGs2h
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
GBPJPY Continues Short Term Momentum

GBPJPY Continues Short Term Momentum

2013-07-24 19:00:00
Walker England, Forex Trading Instructor
Share:

Article Summary: Yen pairs are favored by scalpers for their trends. Today we will review the GBPJPY and its 500 + pip trend with its potential for future short term positioning.

Japanese Yen pairs tend to be extremely popular with Forex scalpers. This is for good reason as Yen pairs tend to form exceptionally strong trends. However before considering any new positions, scalpers should investigate if short term momentum is moving in tandem with a primary trend. Through this analysis scalpers will develop a trading bias, as well as identify the strongest currency pairs for trading.

Today we will focus on the GBPJPY. As it continues its current 527 pip trend, we will look to identify short term momentum to validate any new scalping opportunities.

Learn Forex –GBPJPY 4Hour Trend

GBPJPY_Continues_Short_Term_Momenumt_body_Picture_2.png, GBPJPY Continues Short Term Momentum

(Created using FXCM’s Marketscope 2.0 charts)

As trends develop, it is inevitable that there will be pullbacks against the markets primary direction. This can be a hindrance to scalpers that want to trade the market when momentum is optimal for new positions. One way to avoid counter trend scenarios is to better pinpoint the direction of short term market momentum. In an uptrend like the GBPJPY, scalpers can use a blocking technique to divide their charts into segments or pricing blocks. If price is in an uptrend price should be making higher highs and higher lows for each segment of the graph. Let’s take a close look at the GBPJPY.

Below we can see the current GBPJPY on a 30min chart divided into two pricing blocks. Block One is formed from Wednesday the 17th through Sunday the 21st. During this period we can see the GBPJPY create a series of higher highs, while advancing as much as 373 pips. Next we will look at Block 2 which again moved to new highs. In a strong uptrend, both blocks should be creating higher highs in the direction of the primary trend. Our analysis confirms that is exactly the case with the GBPJPY. Now knowing that current momentum is headed in the direction of the trend, Forex scalpers may continue looking for new opportunities to BUY the pair.

Learn Forex –USDCHF Trading Blocks

GBPJPY_Continues_Short_Term_Momenumt_body_Picture_1.png, GBPJPY Continues Short Term Momentum

(Created using FXCM’s Marketscope 2.0 charts)

It should be noted that the GBPJPY is currently trading over the Block 2 high at 153.80. At the present this should be taken as a bullish signal and a continuation of our analysis. However in the event that price direction changes and the GBPJPY moves to new lows, this would signal potentialat least a temporary momentum shift for the pair. In the event of price breaking below the Block 2 low at 152.32, short term traders should consider exiting or suspending any existing long trades while seeking a better opportunity.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.

New to the FX market? Save hours in figuring out what FOREX trading is all about.

Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading.

Register HERE to start your FOREX learning now!

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

DISCLOSURES