If you have been following my blog, you will see that I often trade the EURUSD and USDJPY. In this post, I am going to share with you why I always trade these 2 pairs after I discover a behavior of these 2 currency pairs.
If you plot the EURUSD and USDJPY on the same chart, you will see that both of them tends to move opposite of each other.
I have recorded a video to show you the opposite movement of these 2 pairs of currency
So how does that help you in your trading?
If you have read one of my blog post where I told you that you need at least 3 confirmation to enter a trade, this opposite movement of the currency pair can give you 3 additional confirmation to enter a trade.
For example, when you see the EURUSD hitting a major resistance with a spinning top candlestick when the overall trend is a strong downtrend, you have the 3 confirmation to enter a trade already.
What I will do is to go to the USDJPY chart to take a look to see if there is any more confirmation from the USDJPY.
If I see the price hitting a major support with a reversal candlestick pattern in a up trend, these will give me additional 3 confirmation which makes the total confirmation to 6.
This means that the trade I am going to enter will have a higher probability of winning now.
However there are times where the USDJPY and EURUSD will be moving in the same direction but this usually occurs when the market is moving sideway and cannot decide on a direction.
As of Friday, we have 2 ongoing trades on the EURUSD and USDJPY.
I have entered a BUY trade on the EURUSD and a SELL trade on the USDJPY and if you are a user of my trade copier, you will see these 2 trades on your account as well.
When the market closed on Friday, the EURUSD is making 12 pips profits while the UDSJPY is just 2 pips in our favor.
How to trade the EURUSD and USDJPY this week
For the EURUSD, I hope that you guys have entered the trade as it is the BB strategy that I have taught you in the course.
The next major resistance is at 1.12024. At that level, the 200 EMA will coincide with the major swings high to form a confluence of 2 resistance which makes that level more significant. Therefore it is a good place for you to exit your trade
For the USDJPY, it has broke a major support and will look to move down and the next major support will be at 107.832.
For those of you who are interested to join my Fx Trade Copier, you can take a look at the service below