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Currency market: USD/JPY and interest rates

Every currency and market price on the planet trades and moves by an interest rate. Every pip traded and moves is associated to an interest rate. If EUR/USD trades for example from 1.1801 to 1.1802 is backed, associated and known by an interest rate. Its impossible for a market price to move without backing by an interest rate.

Interest rates are highly exact and highly specific however certain interest rates are more valuable to movements than others and its why a currency price contains minor and major points. Minor and major points are seen and known within the context of the total day trade price path.

However the total day trade price path to include targets, ranges, bottoms, tops and points in between is actually an exact moving average system but moving averages quite different than anything known or seen before. An interest rate moving average system for day trades cannot match to shorter term moving averages.

USD/JPY 5 day average is located for today's day trade for example at 110.01 exactly. Mathematically the lows are located from 109.20, 109.47 and 109.74.

While 109.20, 109.47 and 109.74 fits to today's day trade price path, the numbers are off to interest rates and won't assist to profits, entries and targets. Nor will all 3 numbers serve as targets or entry points.

USD/JPY highs for today's day trade is located from 110.27, 110.54 and 110.81. The numbers here are miles off today's day trade price path and are completely irrelevant.

USD/JPY 20 day average today is located at 110.07 and lows mathematically are located at 109.23, 109.51 and 109.79. At 109.79 is perfectly accurate to interest rates and today's day trade but 109.23 and109.51 are incorrect as any vital points nor as entries and targets.

USD/JPY above is located at 110.34, 110.62 and 110.90, All are miles off to day's day trade by interest rates.

Most vital points to support and resistance once established and known holds for 24 hours. Hence the 24 hour trade. Support and resistance are exact and highly specific and established either at the China open or upon the release of interest rates by the particular nation. To not know or miss the vital support ad resistance points could blow an entire day trade.

The difference between USD/JPY and JPY/USD for day trades is 2 pips and not much difference at all yet each establishes the information for correct day trades. The 2 pip differential is fairly standard from currency pair to currency pair and to interest rates per nation which means no difference to interest rates from nation to nation to include positive and negative interest rates. Its a question of proper alignment.

5 vital numbers for today USD/JPY day trade are located from 109.04, 109.18, 109.37, 109.86 abd 110.14. Note the giant difference to above math. The central banks changed the scales and the entire game to day trades however if a central bank traded today's USD/JPY, all would employ my exact methods as I copied and figured the central bank trades.

USD nor JPY treasury yields fit to today nor any day trade. Yields don't fit to weekly trades and must be excluded from consideration.

For a perfectly correct view to a wider range based on interest rates, the range is located from 108.57 to 110.60. For 110.60 by math standards is located at 110.54 and 110.81 so 110.54 and 110.81 are still off track.

The complete body of knowledge offered today is extraordinarily wide yet simplistic to understand and easy to trade correctly day trades.

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.

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