Many Forex traders have either been told, or have learnt from painful experience, that the Yen currency pairs can be both dangerous and volatile to trade. The GBP/JPY is perhaps the most infamous and volatile of all. No wonder then, that many Forex traders simply stay away from the Yen currency pairs. But then they probably don’t have a very clear idea of where the Yen itself is heading. If they did, then trading the yen pairs would be much more straightforward. And even if you are trading other markets, such as index futures or stocks, having a view of the Japanese Yen is crucial, given its characteristic of being a safe haven currency.
And this is where the Quantum JPYX steps in. It has been designed to give you the “heads up” on where the Japanese Yen is heading next, against a basket of four currencies. The index is then constructed using an equal weighting of 25% as follows:
- US Dollar
- Australian Dollar
- New Zealand Dollar
The indicator can be used in one of three ways:
- First, to identify and confirm strength and weakness in major and cross currency yen pairs, helping you get in, stay in, and get out.
- Second, as a confirming indicator for the Quantum Currency Strength Indicator, providing a perspective against other currencies,
- Finally, as a barometer of risk particularly when viewed through the prism of related markets, such as equities.
Best of all, you can simply attach to the bottom of your chart, and never have to leave your NinjaTrader account. The indicator plots strength and weakness in the Yen as a candlestick chart, supported by two simple moving averages.
For an even more forensic view of the Yen, why not combine it with the Quantum Currency Strength indicator. Now you can trade the Yen currency pairs with complete confidence, growing your trading account quickly, but with confidence!