Today we find Euro Yen in a state of consolidation. However I have identified a few key areas for this pair to break, we have a 4 hr 21 EMA acting as dynamic support along with a 38.2 fib retracement. To the upside a little trend line trap on the 15 minute chart acting as immediate resistance. Hope you enjoy the video, good luck today!! David Pegler

Currency market volatility following the release of the advance estimate of US GDP has paled in comparison to that seen after the non-farm payrolls report, and traders might see more of the same during tomorrow’s New York session if the figure for third quarter GDP falls close to the consensus forecast of -0.5%. Unusually high variation in the range of forecasts for this particular GDP figure, combined with the notorious imprecision of the first GDP estimate, suggest the possibility of a surprise in tomorrow’s report from the U.S. BEA. Later, as darkness falls over the western hemisphere, the Bank of Japan is due to deliver an interest rate decision as market expectations build that the central bank will follow the current path of its peers.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

After a quick review of yesterday’s trade plan I look at Pound Yen today and take some inventory of where we are and put together a trade plan for the day. Lots technical information, I incorporate pivots, EMA’s, the clock, projections as well as visual support and resistance. Should be an interesting trading day!!! Good luck – David Pegler

Today the Federal Open Market Committy of the Federal Reserve Bank lowered the Fed Funds Target Rate to 1%. See how we traded it live using fibonacci studies, multiple time frames and intermarket analysis of the 10 Year T-Note.

 Wayne McDonell, Chief Currency Coach

Quite an incredible rally we had in the stock markets yesterday NY afternoon. This caused quite a sweet rally in the Japanese Yen cross pairs throughout the end of the day, and a subsequent Asian fade back down afterwards. Once the Asian fade back to the 4hr 21ema and a Fibonacci level had been reached, London itself was left wondering what to do. In this video I show how we built a trade plan from the ground up on the EUR/JPY. All that was left to be done was WAIT for it. Capital preservation is goal number one, and if we did not get our setup entry clues, well no trade then. However, the macd divergence, and other clues in the video did not disappoint. After an hour of waiting for our confirmation it was a rather quick 130 ‘ish pip ride to the upside before hitting resistance and coming all the way back. This trade was available on all yen pairs as a basket, or any single one of choice. Tonight was not a night to chase price, but with a little patience and discipline a several hundred pip day was not all that difficult for one to achieve. Have a great day!

FXBootcamp London Currency Coach-
Christian Stephens

Some nice trading yesterday!! I spend a few minutes going over what we set up in yesterday’s video and how it was executed live. Then I move on to looking at the possibility of some further upside for cable. The setup is the technically the same for Euro, cable and the Yens so treat them the same. Its all about support and resistance these days, if you can trade off support and resistance and manage your risk, you will be just fine in this market. Good luck today!! David Pegler

The second trading day of this week brought yet another another trade setup on the EUR/JPY during the New York session. Although the euro yen failed to break above a major psychological level after the European open, New York open, and U.S. equity market open, the currency pair’s direction was still unclear due to mixed signals from futures markets. The release of a terrible U.S. consumer confidence survey provided clarity, sparking a simultaneous rise in 10-year T-note futures and drop in S&P 500 futures — a scenario in which the EUR/JPY usually falls. Traders who took the conservative entry on a pullback netted a profit of about 100 pips.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Watch the 4 minute video here:
http://www.moneyshow.com/video/video.asp?wid=2577&t=3

Flexibility is very important in this market; we are clearly consolidating for many pairs, however volatility persists. Today I examine Pound Yen in more detail again. I identify support and resistance but do not have a clear trade plan, treat everything on its merits. I hope you find the video helpful. Good luck – David Pegler

This year’s price data suggest a strong positive correlation between equity index futures and the yen crosses. Today’s early London trading featured formation of double bottom patterns on both the front-month Dow Jones futures contract and the EUR/JPY currency pair. The subsequent bounce in both markets set the stage for price action conducive to a long trade, which is exactly what news traders got following the release of September’s US new home sales report. The news scalp produced a respectable 50 pip profit during what was – in comparison to volatility seen in recent days – a relatively tame session.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst