Post of the Day: USD/JPY
In the following chart what is the current trend: uptrend, down trend, or fading downtrend?
Power Course Instructor’s Response:
In looking at the entire chart, the overall trend is virtually flat (See the chart below for a visual.) The red line connects the opening price on the chart (left side) with the closing price on the chart (right side).
About mid-March, however, the current bullish trend begins to take shape. At this point, we would be looking for buying opportunities should price action continue to move to the upside off of support. If channel line support is broken, a short position could be taken with a stop just above old support which has now become new resistance.
The above being said, keep in mind that our primary filter in looking for a trade is to identify the currency pair with the strongest trend on the Daily chart. Since the Daily trend on this pair is flat overall, a recommendation would be to look for another pair to trade with a stronger, more dominant trend represented across the chart.