GBPJPY

Cable is strong this morning and the cross benefitting most is the GBPJPY. The hourly chart show a series of higher lows with hammer at each one.

Whilst these hammers have given us some excellent short run trades, 206 has proved key resistance. If price can move above there could be a useful swing trade.

Scalping a mini rally

Whilst Cable continues it's sell off there is often a useful countrend rally to scalp.

Volume activity can indicate where the balance of buyers and sellers is and the latest TradersClass video shows how to get FX volume plots and when to use it.

Cable about to sell off

The last sell off produced modest profits before a fifth wave rally yesterday. Price hit a key resistance level as shown by the blue lines and a strong correction is now very likely.

After the rally.....

The 200 pip rally in Cable came to an end at a key resistance level and a classic topping pattern.

On the move

The Cable bounce got underway this morning breaking out of the last two days range following the hammer candle.

Cable in the wilderness

The chart of Cable shows how it has gravitated to the lows and is now looking very oversold. The Color Charts are still very red but the first sign of life came yesterday with the Hammer Candle.

Technically the picture is still very weak but a bounce from these levels, if it gets started, could be very rewarding.

Euro bounce possible

The Euro has now put in an engulfing day and the Color Charts have changed to blue.

At the least, price will pause in this area and a bounce back up to the 1.57 area is possible.

A time to take profits

The USDJPY trade has yielded an excellent profit and has reached the first target level as noted by the blue line.

We never like to see profits slip away so partial profit taking is in order here at this support region.

The bigger picture may well suggest lower levels to come but the further a move goes the greater the possibility of a strong bounce that has the potential to wipe out paper profits.

Once a move falters at a support/resistance level the pragmatic trader will take profits and look for the next low risk opportunity.

USDJPY

The Japanese Yen is at a cross roads having weakened up to the resistance area and breaking it's trend line.

This move looks to have run it's course for now and the key number to hold is 10400. A move below will be the start of a new phase of Yen strength.

Euro on target

The Euro trade hit our first target area and then rallied modestly. Today European PPI numbers disappointed and the sell off has started again.

Our strategy is simple, remain short until we have a blue bar!

We are looking for another test of 15400 and then much lower levels if broken.

Swissy on target, and it's NFP day

The Swissy trade is moving along with 150 pips in the bank yesterday with possibly more to go. Our money managment strategy allows us to bank profits along the way and give very little back if the trade runs against us.

It's Non Farm Payrolls day and a suprise in the numbers can send the Fx market shooting off one way or the other. Many traders just take the day off, others who like the excitement, will jump on board and have fun.

We prefer a measured approach, trading through the figures when we have a strong, in the money trade and we often find a useful trade after the figures have been digested by the market and a post NFP tend develops.

And now the Euro looks down

The Swissy trade has taken off this morning and now the Euro is looking very vulnerable.

The chart shows just how far it could fall now the downtrend has started