Talking Points:
• Maintaining a bias on a pair or currency doesn't mean we can't trade in the opposite direction
• Trade opportunities arise on different time frames or when new - if temporary - factors come into play
• We discuss my medium-term bias on USDJPY and the yen crosses against the merits of a long position
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
We should always have a bias on a currency or market so that we are ready to act when a fundamental or technical trigger catalyzes a trade setup. However, having a bias is not an unbreakable commitment to a particular trade. Circumstances can change that in turn change the probabilities of a setup. Sometimes, the development is only a temporary and short-term factor. Should we trade against our bias if a short-term opportunity arises that puts the longer-term outlook on hold? We discuss the importance of having a bias but also assessing how to trade it using my view on USDJPY and the Yen crosses in today's Strategy Video.
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