Strategy Video: Is a USDJPY Breakout Signaling a Yen Cross Rally?

By DailyFx | June 02, 2014 AAA

Talking Points:

  • 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.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center