Dear Anna, First of all I would Thank you for your support and advices/recomendations. I still learn VPA and trade by my ideas and visions. And I know that every trader has own way, and collaboration with successful traders has only positive influences. I would like to ask – if you decided to trade GBP/JPY what would you do (what is more important)- can you give me your vision. I am started to define my system on 1m chart with using EMA 25 and 50, FIBO levels (taking into account overbought and oversold levels) and volumes. Thank you in advance.
Thank you for your email & delighted to hear from you. It is possible to include VPA (or elements) & develop your own trading style and strategy – for example some candle patterns, particularly if you are using the 1m chart. Here the tweezer tops & bottoms work particularly well.
With regard to GBP/JPY – this can be a very volatile pair (as are most JPY crosses), but can deliver some great trades. The JPY is a currency which can reflect both risk & safe haven. It is the currency I always watch (probably more so than the USD). So if markets (equities) are rising then the JPY will be falling. There are other significant factors about the JPY – particularly now in March when the BOJ will be moving into the forex markets as part of the accounting procedures. Japan has a curious way of invoicing for its goods – it invoices in the currency of the export market. So, if the UK has bought a lot of Japanese goods – these will have been paid for in GBP which will need converting back into JPY which can cause some strong moves. Hope the above helps. Kind regards. Anna