Hey guys,
I’m paper trading at the moment - but I’m in a short trade on the USD/JPY pair currently. Since I’m still trying to iron out a trading strategy, I started by looking at the 4hr. chart, which looks like this:
I didn’t spot the trend until it was well into it, and the 4hr. chart didn’t show enough detail (as I know now) to see the obvious downtrend. The white dashed line is the point where I entered the trade. So, after watching some of Jonathan Fox’s videos, I saw him using a combination of the 4hr. and 1hr. charts. I looked at the 1hr. and clearly saw the candles using the S&R areas. Right now it’s testing the resistance directly above it, and based on that, I’m thinking it will swing lower and perhaps test that support line below. What do you guys think? Should I look at that as my target? Also, I’m not seeing any clear price action candles. None seem to have those long wicks where the price reverses. What’s up with that, and how could I spot the reversals in this situation?
Haha…thanks for the warning. It will be interesting to see how this turns out, considering what you said. Since I’m new to this, I’ll be studying the fundamentals against the chart to see how they relate to each other. Couple of questions for you, if you don’t mind:
I see that event located on the Forex Factory Calendar. Did you use that solely as your info on this event, or did you glean the details from a combination of your sources?
Also, how does an asset purchase make the Yen depreciate against the USD? I know that’s probably economics 101, but I don’t understand how you go about predicting that. Thanks again.
In a nutshell they print more Yens in order to purchase those assets and add them to their balance sheet.
This obviously creates a bigger supply of Yens and from there its just supply & demand…
You might wanna check out quantitative easing @ wikipedia if you want more details!
There is some really great videos on “iTunes U” produced by KHAN Academy which explain Q/E and many many othr things about business / trading / mortgage backed securities etc
Check it out, if you have and iPhone or iPad the app is called iTunes U and a ton of financial education courses can be found there not just the KHAN ones.
