How To Catch And Trade Forex Reversals Easily

Markets reverse because of changing economic sentiment.

That's the easy part. Managing your entries/exits is what needs overall care.

Get consistency with this approach.

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USDJPY getting whacked on 50BPS cut.

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Consider trail stops on shorts around key moving average areas.

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Level two for shorts hit over night, second round of gains lockable. Take it.

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Labelled diagram:

Exited once at early Ma's, re-shorted and exited again.

Momentum is Risk Off this Morn and pulling USD up VS JPY.

Would hold off any new shorts until new highs beaten as per video.

註釋

Moved higher as expected on Yen weakness.

BOJ seemingly happy for a further retracement. Do not think they will allow re-hits on highs. Defeats all previous objectives.

Space out entries.

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BOJ Sentiment to understand for Monday open:

No real forward guidance, but looking ahead it seems Q4 may bring a return back to normalisation (hiking) 25-50 BPS.

Does not seem that there is real concern on inflation and indeed normalisation at an extreme pace. Likely we may see drifts on Yen pairs temporarily before a continuation as mentioned in video (Global economies dropping rates, Japan hiking).

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Weakness into London not massively threatening -