USDJPY March 11 – Yen Gaining on Earthquake/Tsunami

Defying my own expectations of a decline for the Yen, it was actually strengthened so much so that it wiped out a week of gains made by the dollar in one day, as you see I had a USDJPY chart prepared then so much extra volume came in the few hours I was asleep at the end of Friday I was forced to create a new chart.

For next week it is quite unpredictable due to the Earthquake and Tsunami disasters hitting Japan all at once but for now I would take care in my entries and always use a logical stops. Tough day to weather this pair no pun intended at all.  In fact, I was commenting, EURUSD, AUDUSD and now USDJPY all gained on the dollar today after the Tsunami news had been digested into the markets; why would the dollar be more affected by the Japanese Earthquake and Tsunami than the Japanese Yen itself?  Because we don’t even see much selling or buying on the EURJPY, almost laying dormant today except for a move from 113.00 to 114 that did not involve large spikes like the one we see here.

AUDUSD March 11 – Wacky Friday Trading

AUDUSD is another pair I had an good chart prepared for, went to sleep, woke up and was in the stratosphere again, over 150 pips up from todays low!  So in chart one we see a large decline on AUDUS all day yesterday and today until chart two when news obviously came out affecting USD against many pairs.

But as you can see within a few short hours, days of declines were wiped out and AUDUSD is approaching 1.02 again; so for next week will we see continued buying in this pair? Your guess is as good as mine.

So, EURUSD and AUDUSD made an almost identical decline the past few days and an identical reversal on late Friday. Food for thought.

Forex Trade: EURAUD 300 Pips in 3 hours

Want to show you all a great trade from last week on the EURAUD which shot up over 300 pips in 3 hours. Forex has its ups and downs, sideways movements, stale markets… well, not with this pair on Friday. I’ll point your attention to the ever-useful Rainbow MMA Crossover template as seen on this FXDD Meta Trader 4 chart. At around 7:50 GMT the pair crosses over from a downward trend, to an upward moving trend as evident with the “flipping of the rainbow.” If you are trading just that indicator alone, you would have made anywhere from 250-300 pips in a few hours, exiting near any one of the resistance points, motnhly daily, or even fibonacci target lines.

I did not enter this trade, merely watched it fly into the statosphere, kicking myself after each resumption of the upward trend after each pullback occured. Darn, maybe next time I should have a little more confidence with this pair, even though my spread is 6 pips.