Posts Tagged ‘GBPJPY’

GBPJPY 5 mins (-19pips)

April 18, 2011 Leave a comment

Incorporation of Pivot Points in this trade:

As Oanda’s Pivot Point is inaccurate (system considers a day from 00:00 EST instead of NY05:00), I took the liberty to extract the daily pivot data from my trade interceptor app (FXCM feed).

Even though price did not rebounce off EMA62 nicely, I still took this trade based on the following reasons:

i) USDJPY 5 mins chart shows a nice rebounce off the EMA 62;

ii) Price reversed at daily PP S1 (now resistance level);

iii) Quiet day, nothing major UK related news coming up.

R:R 1:2, looking to take profit manually anywhere between 25 pips to 35 pips.

Subsequent Update

This sucks. It was going well for a moment and then all hell broke loose. Nevertheless, I didnt time my entry properly. If I timed it correctly just after the previous candle closed, I would have walked away with my target hit in just under 10 mins. (Notice the arrow in the middle of the candle. That’s when I just returned to my screen from my dinner break.)

Oh well, when the ship has sailed, it has sailed.

Lesson learnt.

Holy Shit

What the noggins was I thinkin??

Sloppy stop loss setting! Can’t believe I did not consider the round number setup. I would have walked away with a 40 pips profit!

Just what the $*!@*$#@&$ was I thinking???


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Yen crosses.. Pips for thought..

April 12, 2011 Leave a comment

Why are JPY pairs so volatile historically?

FX 101. What are the Foreign exchange majors?

The majors are USD, EUR, JPY, CHF and GBP.

As they are traded against the USD, major pairs are therefore the EURUSD, USDJPY, USDCHF and GBPUSD.

That brings us to today’s topic, the major crosses: EURJPY, GBPJPY and even the AUDJPY.

From a simple point of view, cross values are derived from the following formula:


(A)          x         (B)       =   (C)

(A): Multiplier pair

(B): Base pair

From the above equation, the EUR and GBP crosses will typically be 1.45 times and 1.63 times more volatile than USDJPY, i.e. Assuming USDJPY is constant, 1 pip movement results in 1.45 and 1.63 pip movement in EURJPY and GBPJPY.

Of course in an ideal world the JPY will be constant. In the real world, both are variables and due to trade flows, prices fluctuate constantly.

Fundamentally, to effectively trade the EUR and GBP yen crosses, one could place more emphasis on the USDJPY pair instead of the EURUSD or GBPUSD.

According to the veterans, yen crosses are not as profitable statistically and not for the faint hearted. I agree with that to a large extent in the sense that stop losses have to be greater, risk is higher etc.

With this in mind, one might also infer that round number Support/Resistance levels (i.e. 1.00 and 0.50 price levels) for cross pairs are not as effective (as the USDJPY’s) since the price of the yen cross is a derivative of the USDJPY .

Point forward, to better utilise stop loss and profit target areas, one should consider consulting the USDJPY charts to identify potential reversal/support/resistance points in order to set informed and realistic stop loss and target profit levels.

And yes, going by the above train of thought, that is why the EURGBP is less volatile by nature.

Talk about round numbers..

April 8, 2011 Leave a comment

Snapshot of how the yen crosses are doing now:

AUDJPY  @ 89.85

EURJPY @ 122.95

GBPJPY @ 139.92

All hitting round numbers pretty soon..

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Trade Setups for Friday

April 8, 2011 Leave a comment

EURJPY 5 mins

AUDUSD 5 mins

GBPJPY 5 mins

Seeing triples? In fact they look the same on most charts. (EURUSD, GBPUSD and AUDJPY). Whilst waiting for the price to rebounce off EMA 62, analysis must be done to select which to trade. Personally I’m liking the R:R on AUDUSD.

EURJPY and GBPJPY’s SMA200 is too far for my liking.

Most likely will target the AUD pairs. Word around is that AUDJPY will be a good pair with lots of action today.

(Earthquake last night and strong AUD employment figures will fuel the action).

Subsequent Update

Not meant to be..

Didn’t pull the trigger @ the circled area. Just not meant to be. Oh well.. Missed a 30 pipper over there.

GBPJPY 5 mins Trade (+29pips)

April 7, 2011 Leave a comment

Check out the GBPJPY trade i took. GBPJPY is not well know for being volatile for nothing. SL had to be set a bit further away to ensure no whipsawing. Anyway risk paid off when it rocketed to sweet previous swing high point for total of +29 pips~


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