A few of the JPY pairs such as the USDJPY, GBPJPY, CHFJPY and especially the EURJPY have continued the roaring up-trend we witnessed and I discussed a lot about at the start of this year. The best and most obvious trend on the daily charts for traders of 2013 has been without a doubt been on the JPY pairs and at some stages this year all traders have had to do is wait for a quick retracement and look to enter with the trend.
The reason I highly advise traders and especially new traders to stick to trading with the trend when learning how to trade is because it starts stacking the odds in your favor before even looking for a price action signal. No matter what method traders use to enter the market, to make money they all need the one thing which is for price to move in the one direction for a sustained period of time. If price is moving all over the place and chopping and changing, this can make it extremely hard for any trader to make money and this is why ranging markets can be the toughest to trade. Ranging markets are even harder than counter trend markets because when trading counter trend there will be high probabily trades come along that give the trader opportunity for the market to pull back within a trend where a market will make a sustained move, but in a range price can and often does chop all over the place, meaning even if the trader does pick the correct direction they can still be stopped out by the whipsawing market.
The daily chart below of the EURJPY shows that the up-trend is clearly in place. Often when strong trends like this are in place the pull-backs or retracement are not as strong. Traders could now start looking for bullish price action signals on their daily and intraday charts to get long with this trend. In the members area we teach members how to trade continuation and breakout signals with the trend for the occasions that price does not make strong pullbacks so they can still take advantage of possible setups where price is going to continue or breakout. If price does make a pullback the Very Big Round Number (VBRN) of 140.00 looks a really solid level for price to fall into for price to act as a key support level.
EURJPY Daily Chart
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