According to reports in FT recent strong moves in CAD/JPY down to Trump/Clinton debate! Move lower in CAD actually started on Friday - as highlighted by our 4hr currency strength indicator. ... See MoreSee Less
Thanks for coming along to our forex webinar this morning where risk was the main topic, and not just risk vs reward of an individual trade, rather the more complex nature of risk we have to face as traders.
And the technical and fundamental lessons came courtesy of the British pound, and the GBP/JPY in particular.
GBP/JPY is a great pair to trade given its average daily range, but can be a trap for the unwary.
First by virtue of being a Yen pair we can expect volatility, although since Brexit volatility in the GBP at the CBOE has fallen from almost 30 to 10 but looks to be moving higher. Volatility on the Yen is slightly higher at 12, and too looks to be moving higher.
Second, from a technical perspective, GBP/JPY has been trying to base in the 129.60 region, with the low of both Monday & Tuesday hitting this support line. This was the picture coming into London as the pair tried to break and hold above the session high at 131.05.
But a combination of Mark Carney & comments from MPC Member Shafiqk put paid to the possibity of a trade as price whipsawed around the high of the session. The result was 2 wide range doji candles on the 30 min chart before the pair fell back to 130.70, from where GBP/JPY has since recovered & is attempting to break and hold once again above the current session high.
Not only are doji candles great examples of market indecision, but within their price action reflect the whip saw and volatility of the faster time frame chart.
David & I will be re-visiting GBp/JPY in this afternoon's webinar and see what the US session will make of this pair. Hope you can join us. ... See MoreSee Less
Chris BillinghamCan the VPOC Quantum Indicator for MT4 be used with all commodity charts and if so what Indicators would you recommend to use beside or alongside the VPOC for commodities maybe the support and resistance indicator or is this already covered by the VPOC plugin