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Keep an eye on USDJPY

Keep a close look at USDJPY.

Whether it is a mid-term duration from beginning of 2017 till present or over a shorter period from December last year, JPY is probably the weakest forex major against the USD.

Forex majors weekly chart overlay beginning 2017 - present

Forex majors weekly chart overlay beginning 2017 – present

 

So USD fell most of 2017 but USDJPY managed to go sideways for three quarters. Since December, DXY has fallen sharply yet USDJPY managed to stay in a consolidation pattern.

Forex majors 8-hour chart overlay December 2017 - present

Forex majors 8-hour chart overlay December 2017 – present

 

Should factors align in favour of USD strengthening, USDJPY could become the pair to go to.

USDJPY in a consolidation while DXY fell

USDJPY in a consolidation while DXY fell

 

To understand how to build/read an overlay, go to this story ‘See relative strength, pick winning forex trade from an overlay‘.

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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