Strategy Video: Is a USDJPY Breakout Signaling a Yen Cross Rally?
- We discuss how looking at common-currency crosses can signal trade opportunities and false starts
- Where USDJPY's bullish wedge break may whet traders' appetite, EURJPY and AUDJPY lead us to reconsider
- A view of Dollar, Yen and Euro based majors shows where short-term opportunities are arising
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Can a USDJPY breakout turn into a lasting trend without supporting moves from other yen crosses like EURJPY, GBPJPY and AUDJPY? While individual pairs can sustain their own trends, it is rare that such a development occurs without buying or selling pressure for a single currency across the market. In this relative performance assessment, we find many opportunities arise - from false breakout retracements, leading signals for new trend developments and even spread trades. We revisit this concept looking at Yen, Euro and Dollar-based crosses that have projected various developments and trade signals in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.