|

Currency market: EUR/JPY day trade example

EUR/JPY levels for today as follows

139.41,139.58,139.67,139.76,139.85,139.98.

Vs 140.20,140.29,140.38,140.47,140.65,140.74,140.83.

Eliminate vitals: 139.41, 139.67 Vs 140.47, 140.83.

At 139.41 and 140.83 = Equal oversold and overbought. 139.67 and 140.47 = Perfect neutral. 140.12 = Perfect 0.

From 13 numbers inside the price path, only 4 numbers are vital.

Note traditional short at 140.74. Correct short at 140.83. Why? Current market price ranges lack ability currently to trade to full potential. Missing? 0.5. to 1.0. Seems small and not significant but both are as wide as oceans.

So small is the currency price yet every last pip contains vital trade information.

To include 0.5 then ranges widen to normal as 141.02 from 140.83 and 139.22 from 139.41.

And 139.67 goes to 139.58 and 140.83 goes to 140.74.

If 1.0 was included as traditionally traded then 140.83 goes to 141.46 and 139.41 goes to 138.77. Both expand ranges by 64 pips.

Ranges may expand but most vital neutral points also expands. The currency and all market prices trades neutral to neutral. The day trade goes from neutral to oversold or neutral to overbought. Then trades back to neutral again. The problem to neutral is wide bands exist and many exchange rate points.

To elaborate to neutral. EUR/JPY today allows for 27 pips to normal trade on each side of 140.12. The remainder exist as neutral. Neutral means price may trade up or down under a perfect equal chance. Central banks established equal chance as statistical masters.

EUR/JPY traded today from perfect 139.85 to 141.16. Then 140.83 must be considered a range break and price expansion. Note the 0.5 and 1.0 expansion levels: 141.46 and 141.06 and perfect 1/2 at 140.16.

A range break above 140.83 means EUR/JPY trades back to a wider neutral point area but it also means a range break entails more money profit to shorts. This is the free money side of day trades.

Described today is a tiny portion to the day trade and much information remains missing to put the puzzle price together. To understand is to profit further without loss. Much description remains and the description was never seen or published in the history of traded markets.

The set up

EUR/JPY

Long Short Line 140.12.

Most Important 139.67 and 139.85 Vs 140.20, 140.29, 140.38, 140.47, 140.65, 140.74, 140.83.

Bottom 139.41 achieves by 139.58 and 139.76.

Upper target 140.74 Continuation Fail 40.47.

Author

Brian Twomey

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

More from Brian Twomey
Share:

Editor's Picks

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February. 

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback. 

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.