★Today's Environment Awareness★ USD/JPY & EUR/USD 【Blog Version: Lehman Trade FX】
Today we had planned to deliver the Remint Trade FX update, but
due to containing throat issues
we have decided to take a break.
In its place, I would like to share my market environment understanding on the blog!
From the screenshots of the chart screen
the lines to be mindful of
the price zones (zones) to be mindful of
I hope you will grasp them ♪
Now, please start with USD/JPY!
USD/JPY Market Environment
This is the 4-hour chart of USD/JPY.
In recent days,
the rate has been moving
within this blue zone.
In other words, inside this blue zone,
it tends to be in a range.
Conversely,
if this blue zone is broken, the environment becomes more likely to form a trend.
In other words,
inside this blue zone, trend following is not highly recommended.
If you are going to follow the trend, it should be after breaking out of this blue zone.
If you choose to trend-follow within this blue zone,
you could scalp for a rebound or drop from the upper edge of the blue zone.
Other approaches can be considered.
However, since it tends to range within the blue zone,
it is recommended to exit positions early.
For those who want to follow trends more conservatively
I think it's better to wait for a breakout from the blue zone.
Next is EUR/USD.
EUR/USD Market Environment
This is the 4-hour chart of EUR/USD.
Overall, the downtrend is dominant,
so selling tends to have an advantage in this situation.
However, from yesterday’s movement
the V-shaped bounce upward suggests
a decoy move that appears to drop but actually rises
is possible.
The key point here is the blue price band.
This blue price band is created by drawing horizontal lines at the two most notable lows on the 4-hour chart
and coloring that price range blue.
Having two noticeable lows indicates that this price area tends to become
a resistance zone,
where the upside may be capped within the blue zone.
Resistance zones can become the starting point for a trend when broken, so
if the blue price band is broken to the upside,
an uptrend may begin from there.
In other words, depending on whether you are above or below this blue price band,
your market bias will be bullish or bearish.
Today's EUR/USD should be traded with awareness of this blue price band.
It has become quite long, so
I will cover the rest, including GBP/USD, in the next article.
