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GBP/JPY Sell Signal
Today in the forex market the GBP/JPY had a sell signal on The Forex Heatmap® forex heatmap. This pair sold off strong to just above the 127.00 support level. We would scale out lots at these price levels, but it could continue lower and has additional room to drop on the H4 and D1 time frame to the next support level. The NZD/JPY also dropped today and this pair should continue down to at least the next major support level, and possibly much lower since this pair is also in a strong downtrend. The sell signal for the GBP/JPY is below, this is the Forex Heatmap®, it gives live trading signals for seven of the forex major pairs, and a total of 28 currency pairs.
You can see that the GBP (British Pound) was weak today and the JPY (Japanese Yen) had some strength, creating a scenario for a strong sell off on the GBP/JPY pair. This profitable trading system for 28 pairs is available from Forexearlywarning.com.
GBP/JPY Sell Signal
GBP/JPY Sell Signal Chart
GBP/JPY Buy Signal
Today in forex trading the GBP/JPY had a buy signal on The Forex Heatmap® forex heatmap. This pair cycled up to the 131.25 area resistance, we would scale out some lots and manage profits at this resistance area. The GBP/USD also moved up strong and this pair has no nearby resistance, it should continue higher on the D1 time frame. Check the signals below, the GBP (British Pound) was strong on all 7 pairs and the JPY (Japanese Yen) was mostly weak. This creates conditions for strong movements on volatile pairs like the GBP/JPY. The Forex Heatmap® provides live buy and sell signals for 28 currency pairs. The heatmap is an important part of our trading system along with multiple time frame analysis, support and resistance levels, and trading with the trends on the higher time frames.
GBP/JPY Buy Signal
GBP/JPY Buy Signal Chart
GBP/CAD Trend Analysis
This is a trend analysis of the GBP/CAD pair using the higher time frames and support and resistance breakout points. With the Forexearlywarning trading system we use multiple time frame analysis, with a focus on the higher time frames, as our market analysis method.
In the example below you can see the W1 time frame trend on the GBP/CAD. Currently this pair is in a nice uptrend with more upside potential to about the 1.7300 area which is about 500 pips above the current pricing. Most forex traders work with the smaller time frames but moving to the higher time frames on trending pairs will result in much more pip potential.
GBPCAD W1 Time Frame
Now lets move to the D1 time frame trend and continue the analysis. The resistance level the GBP/CAD needs to break to continue in the W1 uptrend is around 1.6820, see the yellow line.
GBPCAD D1 Time Frame
By checking all of the GBP pairs we can see that the GBP is starting to weaken slightly so the 1.6820 price resistance point might be a short term rejection point. A reversal back down or retracement may occur over the next couple of days. You can see the repetitive nature of the 1.6820 resistance level on the D1 time frame chart. Traders can watch our video on how to set audible price alerts for any currency pair to monitor any pair for a price breakout.
We would advise setting an audible price alert at about 1.6830 to monitor for a price breakout into the W1 uptrend. Then check the pair again tomorrow for a possible reversal back down using our trade entry management tool.,The Forex Heatmap®. The heatmap vill give you the short term direction and trade entry management guidance.
Using multiple time frame analysis and setting up the charts by individual currency will always reveal what is going on with any currency pair. You can use our heatmap tool plus the smaller time frames to enter any trade, but the higher time frames give you the overall perspective.
Non Farm Payroll NFP, Trading Profitably
In this article we will give you a set of instructions for how to profitably trade currencies after the Non Farm Payroll NFP news announcement with specific charts, signals and techniques. We will show any forex trader how to enter trades in a window of time after the non farm payroll news announcement to take advantage of the volatility.
Most forex traders believe and/or are told that you should not trade non farm payroll NFP news. This is not true at all, this article will detail and show traders how to profitably trade non farm payroll, after the news comes out, and give you a time line of how and when to enter trades and under what conditions.
What is Non Farm Payroll
Non farm payroll news NFP is reported each month by the US Bureau of Labor Statistics, almost always on the first Friday of the month. The news announcement gives out the number of paid US workers of any business, but excludes government employees, farm employees and non-profit organization employees. Volatility statistics indicate that the non farm payroll news announcement is the most volatile of all scheduled US Dollar economic news drivers. The average movement of currency pairs is higher than any other news driver, so this is why traders are interested in trading to take advantage of this. Here is how it looks on the forex news calendar:
Non Farm Payrolls News Calendar
What to Look for After Non Farm Payroll
The best thing to do is to wait until after the NFP news announcement at least 10-15 minutes for the initial price spikes to settle down. Then start to monitor the forex signals and forex charts we show you in this article and in the example below. In some cases the charts and signals may show you a good trade entry point ahead of the NFP announcement, in this case you must have your stops at break even prices on any open trades ahead of the NFP news announcement, or exit the trade manually ahead of the news.
Any trades you make after non farm payroll NFP news would have the same characteristics as you would have in any good trade. Traders can use a great rules based forex trading a system and mimic those rules after NFP. The only scenario you must be careful about is if a pair gaps up or moves up suddenly 100 pips or more in the first few minutes after the NFP news announcement, this is when an entry can become much riskier.
Most traders think that NFP pairs to trade include the USD pairs only. Traders expect movement from the USD pairs after non farm payroll, and this is logical since it is a news announcement related to the US economy. The example below shows that you can look for trades on any USD pair, however with the Forexearlywarning trading system you can look for trades on any of the 28 pairs we follow in the eight major currency groups.
So this is yet another myth we are breaking about NFP pairs to trade after the NFP news comes out. In the example below the US Dollar (USD) was weak and the Japanese Yen (JPY) has some strength, so the USD/JPY pair moved strong after the NFP news. Using the same logic, NFP pairs to trade would include any one of 28 pairs after NFP, even non USD pairs. All 28 combinations of the USD, CAD, EUR, GBP, CHF, JPY, AUD or NZD are possible pairs to trade after NFP.
Traders sometime look at the NFP forex predictions and results to try to trade from this information, we do not think that this is the correct approach. Just wait for the news to come out, then wait for the price spikes to settle down. At that point you should trust your charts and signals presented in this article, because they are highly logical and work well in almost every situation. Demo trading NFP will prove your charts and signals work.
Example Post NFP Forex Trade
On June 3, 2016, here is how trading unfolded. After the NFP news announcement, about 15-20 minutes later, the 107.80 support area was broken on the USD/JPY. This pair continued down to an intra-day low of 106.60, so 120 pips was possible. This pair closed the day at 106.62. This pair was getting close to support levels on the H4 time frame, but in many cases we have seen on trending pairs, post NFP movements can be used to enter strong trends with considerable additional pip potential. See the images below of the USD/JPY post NFP forex signals, a sell signal and also the NFP forex chart showing the amount of movement and breakout points.
Non Farm Payroll NFP
Non Farm Payroll NFP USD/JPY Price Movement
The indicators you see above include The Forex Heatmap® forex heatmap, which gives live buy and sell signals for 28 pairs in real time, even after strong forex news drivers like NFP. The chart setup you see is our forex trend indicators, which are some very simple exponential moving averages, combined with support and resistance levels. The heatmap is indicating clear USD weakness in real time and the trend indicators are showing the trend and support and resistance levels.
The USD/JPY sell was not the only trade available after NFP. The EUR/USD also gave a buy signal after NFP, it also broke out and into a trend in the D1 time frame. This also served as an entry point into a trend with additional upside potential. So the EUR/USD moved up on the same USD weakness and this pair is in an uptrend that should continue much higher on a larger time frame, based on support and resistance levels analysis. So you could have also caught a buy entry on this pair as well while maintaining significant pip potential going forward. Another great trading opportunity after NFP on the same day.
After selling the USD/JPY we would advise scaling out lots, or closing out half of your lots on that sell position. Then let the additional lots ride the trend. Similarly on the EUR/USD buy position, you could scale out profitable lots, then ride the new D1 time frame uptrend higher with a break even stop in place.
Concusions about Non Farm Payroll NFP forex trading – It is certainly possible to trade the non farm payroll news, just after the NFP news announcement, and this type of trading is certainly possible for any one of 28 pairs, not just the USD pairs. You just need the right trading system that is flexible enough to give you accurate entry signals with much better risk management, under different market conditions. This article gives exact instructions on how to trade non farm payroll profitably, after the news announcement, and also shows you the trend and entry indicators used.
If anyone tells you not to trade non farm payroll they are simply mistaken, or the trading system they are using is inadequate or not flexible enough for all market conditions. These same trading techniques and real time indicators also work after all of the volatile news drivers on the world economic calendar across 8 different currencies we track daily.
Currency Pair Analysis GBP/CHF
The GBP/CHF currency pair trend analysis is shown below. This is the H4 time frame. This pair sold off and is now consolidating in a cluster. We expect this pair to reverse back up and break out to the upside. Set a resistance breakout alert at 1.4900, see red line.
Above there it has around 400 pips of upside potential back up to the 1.5300 resistance area. When the alert hits check The Forex Heatmap® forex heatmap for buy entry verification. These price alert area and resistance target area are marked in red on the analysis chart below. The GBP/CHF currency pair was analyzed with multiple time frame analysis by individual currency, this analytical method works for all 28 currency pairs we follow at Forexearlywarning.
Currency Pair Analysis GBP/CHF
NZD Pairs Trading Alert
Today in forex trading the NZD pairs had a real time trading alert to sell the NZD (New Zealand Dollar) on on The Forex Heatmap®. The New Zealand Dollar (NZD) was weak on all pairs. This drove the NZD/JPY much lower and the EUR/NZD higher. Both pairs should continue in the same direction as they are both now back into their trends on the larger time frames. The trading alerts you see below are from The Forex Heatmap®, which provides live trading alerts for 8 currencies like the NZD and a total of 28 pairs.
NZD Pairs Trading Alert
NZD Pairs Trading Alert Chart
NZD/JPY Trading Signal
Today in forex trading the NZD/JPY had a trading signal for a sell on The Forex Heatmap® forex heatmap. This pair and all of the other New Zealand Dollar (NZD) pairs all moved on this basis. The NZD/JPY is at one support level so we would scale out lots on any sells. The NZD/USD also sold off strong and should continue lower after a consolidation period, it is in a strong down trend.
The trading signals you see below for the JPY pairs are from The Forex Heatmap®, which offers live signals for 28 pairs and 8 currencies. Any strong, consistent signal accompanied by a trend on at least the H1 time frame is a ripe opportunity for pips for any forex trader.
NZD/JPY Trading Signal
NZD/JPY Trading Signal Chart
Forex Chart Analysis CHF/JPY
Here is an analysis of the CHF/JPY on the D1 time frame. The D1 is in an uptrend and pointing up. However, there are many layers of support above the current price of 165.20. This is a large cluster of resistance from 165.20 to 166.50. Above 166.50 is a breakout point for a buy. So if you get any buy signals below this price be very careful. Even though the D1 uptrend is a good trend, the final filter for any trade should be your price target, considering all support and resistance levels. Trading inside clusters introduces risk to the trade, so avoid any buys or reduce lots size significantly when trading inside of clusters.
Forex Chart Analysis CHF/JPY
CAD/CHF Trade Signal
Today in forex trading the CAD/CHF had a trade signal for a buy on The Forex Heatmap® forex heatmap. This pair has cycled up to a heavy resistance level at 0.6940. Total movement cycle was about 65 pips. We would be scaling out lots here or possibly exiting the trade completely. Other pairs like the GBP/CAD moved much lower today as the CAD strength dominated the trading in the 8 currency groups we watch.
The market is mostly ranging and oscillating between support and resistance now. The heatmap signal you see below is for the CAD pairs, but the heatmap monitors 28 pairs and gives real time trade signals for 8 currencies in both forex trading sessions, which are the best times to trade the forex market. The forex market has two trading sessions, the Asian session and the main trading session.
CAD/CHF Trade Signal
CAD/CHF Trade Signal Chart
Chinese Yuan Devaluation Creates Forex Trading Opportunities
Today in forex news the Chinese Yuan devaluation created strong movement and trading opportunities for forex traders. The Chinese Yuan (CNY) was allowed to appreciate 2% against the US Dollar (USD). The People’s Bank of China made this move due to the recent economic slowdown there, but was still very sudden and unexpected. This was the biggest one day drop in the value of the Yuan in 20 years. Chinese Yuan devaluation against the US Dollar by 2% is hoped to boost the Chinese economy.
This devaluation caused a strong reaction in the forex market. Currencies in the Asian region and currencies of Chinese trading partners were affected by the devaluation. The Japanese Yen (JPY), the Australian Dollar (AUD), and the New Zealand Dollar (NZD) were all affected by today’s devaluation. Most of the price movement and opportunities for forex traders today resulting from the Chinese Yuan devaluation were on these three currencies.
Chinese Yuan Devaluation, Impact On Traders
The AUD and NZD both tumbled on the Chinese Yuan devaluation news, but the Euro (EUR) also strengthened. This produced strong movements in the EUR/AUD and EUR/NZD pairs. The EUR/CAD also moved up strong as all commodity based currencies reacted to the devaluation news.
The impact of the devaluation news can produce intraday or trend based trading profits for forex traders. As you can see below, the trading opportunities on the AUD pairs alone was significant. The live indicators shown below, The Forex Heatmap® indicated buy signals on the EUR/AUD, EUR/NZD and EUR/CAD for intra-day or potential longer term buys. All three of these pairs are currently in up trends. This is a valuable lesson on how scheduled or unscheduled forex news or global events can bring profits to any trader. Using this type of real time signal system is highly beneficial.
Chinese Yuan Devaluation
Chinese Yuan Devaluation AUDCAD
The movements shown are significant intraday price movements. A 1.69 percent movement in the AUD/USD is about 120 pips, and a 0.79% movement in the EUR/AUD is about 135 pips. Since the EUR/AUD is trending up on the higher time frames, traders can use the Chinese Yuan Devaluation news as and entry point into the trend. Traders can also move their stops to break even, thus preserving their upside potential for even more pips. All traders should consider using The Forex Heatmap® in their trading tool set, along with some simple forex trend indicators.
Currency Devaluations and Interventions
It is important to remember that government interventions and devaluations have been tried many times in the past with various currencies. These devaluations and short term price fluctuations are artificial, and usually short term, due to the high liquidity of currency markets. The overall market forces like the larger time frame trends and interest rate direction will always be the strongest guide for the direction of currencies like the Chinese Yuan, plus the 8 currencies we follow with our trading system.