Oct 14, 2022
VOT Research Desk
Dollar/Yen has been unfavorably decelerating downward in the near term. Over the long run, the dollar/yen has been rising faster.
We suggest a long trading idea with a one-week time horizon since the long term trend is the stronger of the two.
Volatility Markets recommends trades that take advantage of market movements and are motivated by trends.
Trading Concept Basics
Purchase $262,504 USD, or 2.63 lots, of the Dollar/Yen currency pair take the value at the level of 147.2815 with odds of 49.97% for a gain of $ 1,000 USD, and stop out at the level of 146.1633 with odds of 50.0% for a loss of $ 1,000 USD.
Examination of the USD/JPY trend
The recent price of USDJPY was 146.7223. The long term trend is speeding higher, whereas the short term trend is accelerating lower.
This trade is entered when the price has been going higher and faster during the last 20 days.
Examine the USD/JPY currency value
The USDJPY price climbed 15 days and declined 5 days in the last 20 days. There were 0.33 down days for every up day. On days where the price climbed, the average return is 0.216%.
The average return on price decline days is -0.1794%. The price has climbed by 0.0236% in the last 20 days. The average return every day over the last 20 days has been 0.0012% percent.
Analysis of the worst/best case scenarios for the USD/JPY
Inside one week, our worst-case scenario, in which we are 95% positive that this level will not trade for USDJPY, is $ 1.450905, while our best-case scenario overnight is $ 1.48354.
Levels outside of this range are unlikely to be traded, but are still feasible. We are 50% convinced that $ 1.461633 and $ 1.472815 will trade. These values are within statistical probability.
Important Tips to keep in mind:
146.7223 is the current price.
The USDJPY price climbed 15 days and declined 5 days in the last 20 days.
There were 0.33 down days for every up day.
On days where the price climbed, the average return is 0.216%.
On days when the price drops, the average return is -0.1794%.
The price has climbed by 0.0236% in the last 20 days.
The average return every day over the last 20 days has been 0.0012% percent.
Over the last 20 days, the price has increased by 0.0002 per day on average.
The price fell by -0.0458 in the previous session.
The price fell by -0.0003% in the previous session.
The price fell by -0.828 in the previous session.
