Revisiting and Reanalyzing the USD/JPY Forex Pair

Here is a great video and analysis on the USD/JPY pair.  A couple things I will point out about this video as you watch it:

Markets very often break out out of a formation, and then move back to test the breakout point.  Many traders bail out of the trade here, taking a loss on a trade that was at one point very profitable, or they get out flat.  It is important to know that is a very common market reaction, and so traders either need to just trade the surge on the breakout, reaping a profit, or be willing to hold for the larger movement to unfold even if the market retraces back to towards their entry point.

The other thing worth noting is what he mentions in the video about reactions being similar within a trend.  When reaction magnitude starts to change it can give early signal of an alteration (slowing, accelerating, or potential reversal) of the trend.

Check out the video, is well worth watching.  If you wait right till the end of the video you will offered a free 30 day trial of all the great services and products offered at Market Club.  But the video is free and you are under no obligation to sign up for anything.

http://www.ino.com/info/411/CD3784/&dp=0&l=0&campaignid=3

Cheers,

Cory Mitchell, CMT
Chief Market Strategist

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