Hello.

Taking a break from the EUR/USD, let’s take a look at the GBP/JPY.

The first screen capture is of the daily chart. We labeled the chart with our count of the longer-term movement. Have we completed a Wave 3 bottom on 12/12?

We turn to the hourly chart and see a potential triangle forming. If it breaks the bottom trend line, it will likely go down and test the 12/12 low again. If it breaks that low, then we know we are in a continuation of the down trend.

If the pair heads up and breaks the upper trend line, then we’ll wait and see if it breaks the high of 12/16.

Keep in mind this pair moves very quickly in a short amount of time. If you’re not used to trading this pair, applying your own money management and stops are necessary to protect you from whipsaws.

On a side note, I’d also like to wish my wife a Happy Birthday. Her birthday is actually on December 20 (how convenient when the markets are closed) so it’ll be a fun time for us and the family.

Don’t forget - you need to take the time to rejuvinate yourself so you’re fresh for trading.

Good luck and if we don’t post again before the weekend, have a safe and happy weekend!

Hello everyone.

Let’s go back to some basics with our friend - trendlines. Let’s take a look at the hourly chart on the USD/JPY.

Although you can’t see it, we had a triangle forming and you saw that once it broke the bottom triangle trendline, it went down, came back up to almost the same level and then dropped.

Now, we are approaching another area of indecision. We’ll watch this pair as it approaches the trendline in the yellow shaded area.

The pair may go up to the trendline and keep going, it may hit the trend line and reverse back down or it may not hit the line at all. This gives us a potential area where the currency may hit so we know what to potentially watch for.

Remember, when you are trading to always apply your own money management and risk vs. reward ratios.

Heading into a short week for the U.S. markets due to the Thanksgiving holiday, there will be less volume and you may witness more volatile movements.

Good luck and if we want to wish everyone a happy and safe weekend.