JPY drop allows great buying opportunities (11/08/2014)

Today we investingate how a pullback on JPY has provided several good opporunities to buy JPY.

After performing a quick scan of the markets using the Trend/Wave/Extreme under the 4 Hour timeframe we can see that the JPY crosseses are all pointing down an up wave and in 4 out of 6 times overbought . Therefore this pull back provided chances to sell pair such as EURJPY,AUDJPY,CHFJPY,ANZDJPY. We investigate the first two.TWX 20140811

 

 

EURJPY (H4) Sell

EURJPY 20140808

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Down Red filled pointing Down Trend
  • Extremes bar is Up Green filled pointing the pair is becoming overbought
  • A solid down trend line chart pattern
  • It has exhibited so far a 110 pips upward correction

*Note: Looks like the downtrend has completed an up correciton.

AUDJPY (H4) Sell

audjpy 20140811

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Down Red filled pointing Down Trend
  • Wave bar is Up showing that the pair is in correction mode and extremes bar shows overbought
  • A solid down trend line chart pattern
  • It has exhibited so far an 90 pips upward correction

*Note: The pair is still in correction mode and not overbought so wait for two consecutive candles prior to selling as it possible to move higher prior to dropping.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.