USD/JPY is the primary currency pair I am looking at nowadays. Just like the beginning of courtship, I begin digging the internet for everything about USD/JPY I manage to unearth some interesting information!

USD/JPY tends to be weak during the Golden Week

Javy Forex analyzed the USD/JPY during the Golden Week for the 12 years from 1995 to 2006 and came to the conclusion that in 9 out of 12 years, USD/JPY finished lower during the Golden Week. Not just that, EUR/JPY and GBP/JPY appear to observe the same pattern as well.

MrForex.org has an interesting article and provides the following observations for USD/JPY, with particular focus on the Japanese instituitional traders. He says the USD/JPY:

• is prone to short-term trends, followed by sideways consolidations - by short term, MrForex.org is referring to several hours to several days. I am not sure if there are other currency pairs that trends for weeks or months or years though
• tends to respect technical levels with far fewer false breaks - this is good to hear. So we can trade more breakouts?
• is usually highly directional (one-way traffic) on breaks of technical support and resistance - combining this observation with the previous, we cannot wait for price to retrace back to key levels. We’ve got to place our entry at the key levels themselves. Now the question is, how to identify the key levels.
• has spike reversals (sharp – 20- to 50-pip – price movements in the opposite direction of the prior move) from technical levels are relatively common - not sure how useful is this one. Comments, anyone?

The following statement from Trader Rich’s post stood out:

“According to my research the gartley and butterly patterns have an 80% success rate.”

The Fibonacci series at its best again.

Now, what I need is a software that can identify patterns for me. Sugggestions, anyone?

If you find this post or this blog is helpful to you in any way...do consider buying jmot a kopi (aka coffee)!