USD/JPY Daily Video, October 29, 2010

[Sive Morten]

Hello everybody,

We've talked much about GBP, EUR, AUD in recent days, so let's shift the direction and take a look at JPY.
There is not much new on longer time frame - I still expect that market should reach 78.40 area.
Meantime on shorter time frame DRPO is possible...





technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[William Edward]

Sive,
Just wanted to thank you again for your very accurate and helpful analysis. I especially thank you for sharing in depth the Double Repo mechanics with the AUDUSD. You not only share the fish with us, but you teach us how to fish. Many thanks to you!!!!!
William

 

[m0z1]

Eur/usd

Hi Sive

Is this behaviour of EUR/USD normal for a butterfly pattern? How can we create the butterfly pattern in MT4 platform?

Thanks
Mili

 

[Sive Morten]

Hi Sive

Is this behaviour of EUR/USD normal for a butterfly pattern? How can we create the butterfly pattern in MT4 platform?

Thanks
Mili

Not quite normal. The last sell-off on 4-hour chart is not very typical for butterflies. But, theoretically, until low at 1.3680 holds butterfly is still can materialize. At the same time I do not recommend to possess yourself in this butterfly.
Daily pattern on EUR looks more like a Diamond.

 

[Jyotiprakash Pal]

ya Masta Sive ...rare Diamond Top downward reversal formation having put in a bearish Dark Cloud Cover candlestick pattern .....

 

[Jyotiprakash Pal]

ya Masta Sive ...rare Diamond Top downward reversal formation having put in a bearish Dark Cloud Cover candlestick pattern .....

 

[georgeta]

conflicting signals

Hello Mr. Sive!
As I see, yesterday we had two conflicting signals: buy the butterfly on EURUSD and DRPO sell on AUDUSD. AUD is following the EUR, they had almost the same shape for the last month, is it not? This morning, while AUD was completing DRPO target, EUR droped. Is this correct or am I just imagining?
How should we trade this conflicting signals?

Thank you and have a nice weekend!

 

[wade pugsley]

I had the same exact question...

 

[Sive Morten]

Hello Mr. Sive!
As I see, yesterday we had two conflicting signals: buy the butterfly on EURUSD and DRPO sell on AUDUSD. AUD is following the EUR, they had almost the same shape for the last month, is it not? This morning, while AUD was completing DRPO target, EUR droped. Is this correct or am I just imagining?
How should we trade this conflicting signals?

Thank you and have a nice weekend!

Well, if you do not know what to do currently - do nothing and wait. I try to act in this way...

In fact this is just an assumption that this can be a butterfly "Sell" and signal will be completed when and if butterfly reaches its target. you can enter 'Long' during the left wing of butterfly is forming, but this is an anticipation of butterfly and this risk is up to you if suddenly butterfly pattern will be canceled and market will move below 1.3680 roughly.

 

[ramani]

master sive can post more usdjpy n eurjpy