USD/JPY – The Only Chart That Matters

So many retail investors constantly searching for the “single metric” that “single indicator” that will Trump all, and provide the most valuable insight into the deep dark secrets of “mother market”.

Look no further.

The currency pair USD/JPY tells you everything you need to know.

USD/JPY at resistance

                                                                    USD/JPY at resistance

No need to draw any more lines / arrows on the chart as you can clearly see ( by looking back and identifying areas of previous support and resistance) – USD/JPY is now approaching “serious” resistance here around 112.00

This is a simple “bell weather for risk appetite” as….USD/JPY will FALL as risk comes off. From a purely technical standpoint – things don’t look good for bulls here.

Watch and see as the outcome from this week’s Fed meeting comes to light here Wednesday. You’d have to assume The Fed will again “talk down the dollar” as further appreciation will continue to kill U.S Exports.

I’m locked and loaded. Have you made your plan?

16 Responses

  1. Tas May 1, 2017 / 11:36 pm

    Gold mate, to be honest the last 6 months i have started making consistent profits, took me a while. But seeing your analysis and charts you realize how simple it can be. I guess without other dickheads trying to sell us something they really put a spin on the already tested methods in trading. Also if they can not make new shit up they have nothing to sell to those who are really green trading and those always looking for the magic pill.
    When i simplified it i was shocked how it worked. But took me going through all the experts, indicators and $$$ to realize that.
    It is human nature to want everything quick and easy. That is the real downfall of traders i think wanting to be a millionaire in a week, good way to blow an account up.

    Loving it Kong well done again on great site.

    • Forex Kong May 2, 2017 / 12:45 am

      Thanx a tonne Tas.

      Like anything really….you have to completely “learn it”…..then essentially forget everything you’ve learned!

      Tis the nature of the beast with these “steep learning curvers” – Try jazz as another example. Good for you man….sounds like you are well on your way to getting this solved.

      I too went thru every single possible bell / whistle / indicator under the sun, til it all finally sank in. Scrap most of it!

      Go Tas!

  2. Peter May 2, 2017 / 1:21 am

    Hi Kong
    What’s ur target price for this impending usdjpy hard flop?

    • Forex Kong May 2, 2017 / 12:43 pm

      Targets are tough ( as we’ve not yet seen the turn! ) but….if a “lower low” is in order then sub 109.00 is in the cards, but I can’t say “with any certainty” I’ll be hanging around til then.

      I look at the combination of “many trades” cumulatively so…when I enter a raft of trades at any given time and see “x %” profit “in total” I may choose to take profits regardless of the individual trade wins.

      • Peter May 2, 2017 / 1:57 pm

        Do u see audjpy taking a hard flop too?

        • Forex Kong May 2, 2017 / 3:36 pm

          Absolutely!

          These pairs all line up around “risk appetite” and “risk aversion”. AUD/JPY prime as well here.

  3. David Kurzhal May 2, 2017 / 1:33 am

    I definitely see a pullback coming, but 110 is key, otherwise could end up being an Inverse head and shoulder pattern in the making.

    • spanky May 2, 2017 / 8:53 pm

      Exactly. Until the BoJ tapers its QE, there is not a fundamental reason for JPY to strengthen.

      2016 looks like little more than a correction (albeit a pretty severe one) in a ongoing bull market for $USDJPY.

      The fact is the Fed, BoJ and ECB have masterfully coordinated monetary policy to drive equities to new all time highs and commodities to 40+ year lows.

      This is the new normal–total CB control of markets–and they are not going to relinquish them any time soon. When and if the BoJ has to start tightening (only the shysters at the Fed ECB and BoJ know when), commodities will finally stabilize.

  4. Pale hermit May 3, 2017 / 6:35 pm

    Omg… are u seeing how the morons holding up usd even though they are slapped 30mins ago? News just brushed off Puerto Rico news and fed statement in less than 1min. I am rolling off my chair

    • Forex Kong May 3, 2017 / 6:48 pm

      These things usually take a day to wash/rinse etc….

      I’ll be looking for weakness in Japan tonight, and likely enter trades sometime tomorrow afternoon.

  5. Chris Van Eaton May 4, 2017 / 6:48 am

    same idea here… I was thinking 112.80..a test of 113.00+? There still is a gap at 109.00

  6. Chris Van Eaton May 4, 2017 / 8:12 am

    what bothers me…there is a gap below the eurusd and the usdjpy and the the dyx to the upside??
    fib rtracement??

    We shall see….

  7. Zllz May 4, 2017 / 11:09 am

    Funny how gold, commodity, USD r all down while equities keep going up n up due to EUR n usdjpy breaking up as well… Neverending central banks manipulation

    • Forex Kong May 4, 2017 / 6:09 pm

      These things don’t all turn on a dime in a single session / trading day.

      A day like today “looks” right on track for reversal across the board but not before some rinse action!

      GOld smoked another day…USD also down big?? Favors one of them moving higher on a longer term time frame, and USD ain’t gonna be it.

      Patience young gwasshoppa – patience.

  8. Zllz May 4, 2017 / 6:40 pm

    Hmm looking like vix or the other volatility instruments is key to a proper mkt Selloff. Vix is being used as a manipulating Algo tool to keep equities afloat.

    • Forex Kong May 4, 2017 / 7:20 pm

      Vix this low in general certainly something to watch although…I gain nothing from ViX as indicator / tool in forming trade ideas, not to mention throwing timing in as a factor.

      So many better ways to play “risk off”.

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