Want to do USD JPY technical analysis today? Well, the technical approach of analysis is a very efficient and effective way to make a huge profit in this busy financial market. And, if that’s what you have taken then it’s definitely the right path. However, besides reading the price chart, there are certain mistakes that should be avoided while taking this approach.
Let’s have the base idea revised once:
In the pair USD JPY, US dollar is the base currency and Japanese Yenis the counter currency. Now, if current price fluctuates around 1.2155, that denotes, 1 USD is going to purchase 1.2155 JPY. Hence, when you wish to buy 100 000 USD/JPY, you would actually be buying 100 000 US dollars.
How to predict future from price charts?
Reading the price charts require expertise to speculate the possible future movements. There are certain price ranges where these patterns occur in different periods of varying lengths. Uptrends and downtrends form triangles, wedges, flags or other shapes from converging or diverging. These shapes and patterns will give you a comprehensive idea to study the history and speculate the future.
Next, when you use technical analysis to frame your trade strategy, there are certain points that need to be considered.
Major mistakes to avoid
- Check history
To forecast the future price chart pattern, you need to recheck the previous happenings, historical trends and data. In currency trade, these patterns repeat with a scientific accuracy. So, you can get a close-to-clear forecasting of the future trends to do a profitable business. The secret here is to make calculated moves at the right time.
- Follow moves and not causes
In USD JPY technical analysis today, you have to monitor the price movements that are occurring due to many important factors. But you must be concerned more about how the prices are moving rather than why this shift? To be a successful trader, you have to understand which situation can bring you profit and which trend to stick to at a given time.
- Don’t blindly rely on news
Remember; never blindly rely on news when you are taking the technical approach. Many people might give you opinions and suggestions; you might come across broker arguments as well. But a fact is these are not as accurate as scrutiniяed price chart data are.
The success tip for forex USD JPY technical analysis:
Fx trade system is rule-based, held firmly by factual discipline. You need to frame powerful strategies and have strong skills to understand support-resistance levels, prediction and of course, money management. Most traders fail because of their poor methods and approaches for their currency pairs like USD/JPY.
If you can do USD JPY technical analysis today successfully, every minute will earn you handsome money. Aspirants should include this section in their training course. You can also use the online platforms who offer demo accounts for your practice. From beginners doing analysis, you will gradually learn to understand market psychology.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.