[Feature: Target Currency Pairs] The 2020–2021 Market: Win with a "Rule"! Learn with the Chart and Focused Explanation of Usable Anomalies [FX攻略.com Editorial Department]

What is an Anomaly?

An anomaly originally meant “a phenomenon that cannot be explained theoretically but is empirically and statistically observed,” but nowadays it is often used more broadly to mean “a pattern that tends to occur repeatedly in the market.” For example, the reset level (nakadate) and the London fix are factors determined by banks’ rate setting, so a theoretical explanation is possible. Also, anomalies are characterized by recurring appearances at certain timings or seasons, and knowing them in advance can help in analyzing price movements.

*This article is a reprint and rewrite of a May 2020 issue article from FX攻略.com. Please note that the market information described may differ from current market conditions.

The Laws that Move the Market More When You Know Them

In financial markets such as forex and stocks, there is said to be a kind of regularity called an anomaly. Beyond the original meaning of the word, it is often used to mean “a rule that can make trading advantageous if known and used,” which is almost the same as market edge or edge.

For example, if you know the Gotoe day anomaly—that the yen tends to weaken toward the nakadate and that gaps tend to close—you can trade far more advantageously than if you didn’t know.

However, you must be careful: anomalies alone do not guarantee profits. If large risk-off actions or stock declines occur at the nakadate timing, aiming for a rise recklessly will likely lead to losses.

In other words, by combining technical analysis and fundamental analysis with knowledge of many anomalies, you can realize more advantageous trading.

In this article, we introduce famous anomalies together with charts. Use them as materials to trade advantageously in markets from 2020 onward.

Anomaly Event Calendar 2020/2021 Edition

Spotlight Event ① U.S. Presidential Election

Although voting is on November 3, the market has been moving whenever information about the Democratic candidate selection is reported. It looks likely to be a major theme in this year’s market.

Spotlight Event ② Tokyo Olympics

Linked to the Olympics, there will be a four-day weekend in July, so there may be a timing when swap points are consolidated. Check how FX companies will respond.