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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Wall Street
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
Gold
Mixed
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
Mixed
USD/JPY
Mixed
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
More View more
Real Time News
  • The $USD may return to the offensive as markets flee to cash amid fears of deep global recession thanks to the still-raging #coronavirus outbreak. Get your US Dollar update from @IlyaSpivak here: https://t.co/g1us4ZbYR5 https://t.co/detT6m6ZKo
  • The #Dow Jones, S&P 500 and #DAX 30 have bounced after aggressive declines. Can this momentum last? Trader positioning seems to be offering mixed signals as technicals point bearish. Get your market update from @ddubrovskyFX here:https://t.co/DdCUyoGSmL https://t.co/NQtbwy5Brg
  • Reports that London-based fund managers have discussed long market closures with the Bank of England are unlikely to bear fruit, but that they happened at all may boost already-crowded haven trades. Get your EUR/CHF market update from @DavidCottleFX here:https://t.co/mernf5MDH3 https://t.co/1rzQT6ClCY
  • $AUD chart positioning suggests prices have set a swing top near the 0.62 figure. Re-engaging the long-term downtrend against $USD may follow. Get your AUD/USD market update from @IlyaSpivak here:https://t.co/OIEDlId6HZ https://t.co/CzqJf3wsgh
  • The $USD could be on the verge of regaining upside momentum against ASEAN FX such as the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit. Will the Philippine Peso follow? Find out from @ddubrovskyFX here:https://t.co/cBzPejcNHu https://t.co/4fcImOiSzD
  • $NZD chart positioning suggests the downtrend against its US namesake may be resuming but trader sentiment studies flash warning sign for sellers.Get your NZD/USD market update from @IlyaSpivak here:https://t.co/NUHD43A8C9 https://t.co/K7l3Ju0GP0
  • The Federal Reserve has made a powerful statement about its commitment to shoring up offshore $USD funding markets through the #coronavirus spread. Get your market update from @DavidCottleFX here:https://t.co/fLZjxjr4L9 https://t.co/UdRor0d92U
  • The #Euro has dropped through support guiding it higher from late-March lows, suggesting that the end of a corrective rebound has given way to downtrend resumption. Get your $EURUSD market update from @IlyaSpivak here: https://t.co/gpKowYNmGi https://t.co/CY7RuZf91s
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/Q3sPmP2rya #tradingstyle https://t.co/ayjehPGEeT
  • $USDCAD came close to taking out the 17-year-high just a few weeks ago, but this was followed by an aggressive pullback down below the 1.4000 handle.Get your USD/CAD technical analysis from @JStanleyFX here: https://t.co/aWmL2rlWzG https://t.co/cauVFdBxsd
Strong & Weak: 2 Reasons to Buy Yen

Strong & Weak: 2 Reasons to Buy Yen

2014-01-15 04:17:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Talking Points:

-Japanese Yen (JPY) moves from the weakest to the middle of the pack in possibly a trend change move

-USD to Yen price pattern suggests lower lows in the weeks ahead

-Buy Japanese Yen Currency Basket (enroll for demo account at the same link)

When analyzing the pricing of several currency pairs in relation to their 200 period simple moving average on a 4 hour chart, many of the prices are in the neutral zone. The neutral zone means the prices are close to this trend defining moving average level. Therefore, some of the trends of calendar year 2013 are at risk of reversing.

Using the strong weak analysis below, it appears the Japanese Yen has strengthened considerably in the past couple of weeks and patterns suggest Yen strength may be around for the weeks ahead. These are our two reasons for wanting to buy the single Yen currency.

As a result, we will look to buy the Japanese Yen against a basket of currencies using the Mirror trader platform.

Forex Strategy: Matching Strong versus Weak

Currency

Up Arrows

Down Arrows

Change From Last Report

NZD

7

0

Higher 3 rankings

GBP

5

1

Lower 1 ranking

EUR

2

1

Lower 1 ranking

USD

2

2

Lower 1 ranking

AUD

2

2

Higher 3 rankings

JPY

2

2

Higher 4 rankings

CHF

1

6

Lower 2 rankings

CAD

0

7

Lower 2 rankings

Chart created by DailyFX EDU Robert Warensjo

According to our Strong/Weak analysis and resulting chart above, the Yen has increased four positions higher from the weakest currency to the middle of the pack in the past two weeks. This large move could be indicative of at least a temporary trend change for the Japanese Yen suggesting the Yen may further strengthen.

In fact, we previously wrote about two patterns in the USD/JPY pair that suggest deeper retracements lower may be on the horizon for the pair. The pair has currently stayed below 106 resistance leaving the two patterns in place as a possible explanation for the move.

Executing the Trade

Since we anticipate the JPY may experience a broad based rally, we will take a diversified approach and buy the single currency against a basket of currencies. There are several advantages to trading a currency rather than a pair with the largest benefit being diversification.

We will initiate a JPY Buy Basket trade through the Mirror platform. You can even try this out in a practice account at the same link above.

We will look to risk 2.0% on the trade for a minimum profit objective of 4%.

Good luck with your trading!

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX Education

Follow me on Twitter at @JWagnerFXTrader.To be added to Jeremy’s e-mail distribution list, click HEREand select SUBSCRIBE then enter in your email information.

See Jeremy’s recent articles at his DailyFX Forex Educators Bio Page.

Want to learn more about incorporating Moving Averages into your analysis? Take this Moving Averages course and learn about the common moving averages and how they are used to determine trends and time trades.

Register here for the free 15 minute course to start your learning.

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

DISCLOSURES

News & Analysis at your fingertips.