Guess I'll pick up where I left off before:
Quote:
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I Primarily trade the GBPJPY by monitering both GBP and JPY currencies against the dollar.
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To those of you who trade the GBP/JPY.....
How many of you did well at the beginning of the week (especially Wednesday)?
If you review your charts,
see if you find that when the GBP/USD and the USD/JPY are in "sync" it becomes "easy(er)" to trade the GBP/JPY.
When they are arguing with each other and moving opposite each other it becomes difficult.
From a fundamental analysis, look at it this way:
If the "market makers" (i.e."them"/"they") are selling the GBP and
buying the USD (only), then the USD/JPY will be moving
opposite of the GBP/USD. It makes trading the GBP/JPY very difficult, for obvious reasons.
If they are selling the GBP and
buying the JPY, you will see ALL 3 Charts (GBP/USD, USD/JPY and GBP/JPY also EUR/JPY) move together in the SAME direction.
The charts I posted, (within reason) began to synchronize and move the same direction at the same time in the beginning of the week (selling GBP/buying JPY), and strongly reversed on Wednesday(buying GBP/selling JPY), and they became disconnected on Thursday/Friday as the markets focused more on the USD.
They (market makers) were (simultaneously) STRENGTHENING (then weakening on Wednesday) the DOLLAR
and the YEN at the expense of the GBP.
When they are strengthening the DOLLAR ONLY, it will be at the expense of the YEN (typically) and the charts move opposite.
To put it simply from the technical analysis side, the best time to trade the GBP/JPY is when the GBP/USD and USD/JPY move in
the same direction.
This is why it is
crucial to be able to simultaneously moniter the USD, even if you are trading the GBP/JPY.
Picking your points of entry and exit still requires all the things (RC's/Waterfall patterns/Stretch Candle exits) as discussed before.