My week 46 Sunday analysis above clearly shows that as of 8pm GMT on Sunday 12th November 2017:
- JPY is the 3rd strongest (S3) currency in the market
- NZD is the weakest (W1) currency in the market
- We cannot trade JPY/NZD so we reverse the Base & Quote currencies show to NZD/JPY
Let’s pull up the NZD/JPY chart and see what it has to offer.
NZD/JPY Short – Trade rational and chart
This signal landed not just in my Sunday Analysis (above) but again within my Daily Forex Strength / Weakness Analysis on Monday 15th Nov.
I was aware of the falling channel support and even more so of the 75.90 support below that, but as usual I was happy short this pair based on the indication of my Strength Weakness analysis and to be guided by the same for my for my exits, holding this position until I see a good reason not to.
Trade Outcome: NZD/JPY Short
The market opened @ 78.61 and closed 222 pips lower @ 76.39
As predicted, and in line with my Strength / Weakness Analysis, the market drove this pair short for the whole of this week, with Friday’s Bear-Bar being the big move of the week seeing price wick low breaching the Falling Channel Support before the market close.
I entered short early on Monday morning, exiting just minutes before Friday’s 10pm GMT market close.
Outcome:.+ 205 pips of profit !