JPY showing strong signs according to MACD indicator

FX Strategy Articles > FX Trading Tips

If you have been following the plight of the JPY since the earthquake you will know that it has been hit significantly falling against all major cross currencies, however, the MACD Indicator shows that the currency might be oversold and set to rally against major cross currencies.

This is evidenced by the chart below which plots the JPY vs. the USD, AUD, CAD and CHF. As you can see the MACD line in all of these charts converged in the overbought region indicating that a price decline in these cross currencies is possible. Since the JPY is listed second in all of these cross currencies, this corresponds to an overall rally in the JPY. If the MACD indicator turns out to be correct, this will be a welcome change in momentum for the JPY.

check out our chart and video below on this topic!

Chart JPY vs Cross Currency


Published on 18th of April 2011
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