Forex Strategy Video: Using the Crosses to Trade the Yen
• A common level of support amongst the crosses, can establish restraint on certain pairs like AUDJPY
• Given the tight congestion, a breakout is likely; and the usual catalysts represent the spark
Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!
After holding a multi-month trendline, AUDJPY has reversed back into a well-established range. Yet, how far can this reversal go? Though the immediate range seems to be over 150 pips and the support another 100 pips lower, the pair may struggle to reach the floor. Why? Because the yen itself is hitting resistance. Looking at the yen's technical bearings amongst the spectrum of crosses, we find most of the pairs are already standing at support. In fact, USDJPY, EURJPY and GBPJPY are testing their respective floors within tightening wedges. In today's Strategy Video, we discuss how we can use the crosses for a particular currency (we discuss the Yen) to better assess our trade potential.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.