By: Christopher Lewis
USD/JPY is one of my favorite pairs at the moment. While the rest of the world worries about which direction the EUR/USD pair is going to trade through the headlines, this pair has delivered something that the EUR/USD pair hasn’t been able to: A one way move.
This brings up an important point: The Forex markets aren’t about trading Euros, Yen, Pounds, or Aussie dollars. In fact, you aren’t trading anything at all when you break it down. It isn’t as though I have to worry about a truck pulling up to my house and delivering a lot of Euros when I trade. It isn’t as if it makes a big difference at the end of the day if I make my profits in Yen, Francs, or Pesos – it all turns into Dollars once it hits my account anyways.
The fact is that perception is a funny thing when it comes to trading. While everyone worries about the Euro, there are some of us out here not getting involved in the drama. Let me put it to you this way: If I told you that you could get a 30% return on your trading in Yen, or you could guess over and over in a choppy market – which one are you going to choose? That’s the point in a way right now. Forex is about trying to find the trending pairs, and leaving it at that. No need to get cute with the rest of the markets.
Shooting Star
The pair formed a shooting star for the Wednesday session after first poking through the 84 handle. The Monday session produced a hammer off of the 83 level to show support as well. It is in this backdrop that I feel that we are going to see a bit of a grind sideways at this point. A pullback is possible, but selling isn’t a thought to me at the moment as the pair has broken major resistance levels recently. With this in mind, I am buying this pair every time I see supportive candles, and this shooting star doesn’t change that. In fact, I think it simply shows a struggle, but a struggle on our way to 85.
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