Daily GBP/JPY analysis

interesting method! i like long sharpshooting and some good day i will get there as i leave my rave shoes in closet :o)

Allgood and take it easy!
Your fafourite Mother

Can anyone explain this to me? Is this real?

http://forex.tradingcharts.com/chart...&Submit=Submit

http://i34.photobucket.com/albums/d130/bmwboyee/wtf.jpg


I called into my broker to put a buy limit at 234.35 and it never got filled. I am sorta pissed because most of the time they will fill me on the bid price. Do you think i have a case with them to fill me at that price. Or was it my mess up and should have told them 234.45? I mean, i was going in with 2 lots and I would be looking at $6,000 right here.

dunno exacly what you ment did you have bUY order in 234.35? becous it did go there today earlyer. depends what time you put the order? but i am not so experiensed and still demo blasting my self.
is that window tru what is in that chart? i quess if they show realtime during the weekend?

my order was placed at 21:39

is thats somehwhere in GMT sector . is shoud have been taken.
brokers are the casino. so i have experiensed. i use NorthFinanse demo. and sometimes they count spread in the ORDER limit so if prive is 234.35 in the STOP/LOSS/ORDER table it have + spead so in NF its +8 . .. but NOT ALLWAYS it seems they make own timeing when they add SPREAD in that table..... i can not say eany bullet broof but i have just notised this. so if this is so the it might jave just bearly slipped but in my chart it shot 22:40 (+2 GMT) it hitted 234.27...

so EXAMPLE if price is 234.30

in the STOP/LOSS/PROFIT/ORDER its 234.38

its a platform glitch....you're lucky it didn't aversely affect you....I got that with fxdd but the glitch was south and the price went to zero causing my floating negative to become realized negative (-3k) which sucked....this also happened to me with 1world when we had that other dip 2 or 3 weeks ago when it went back down to 222.73 after it got up to 226....it frozed at 222.73 and I saw at fxdd it had retracted back up but I got scared to execute a trade so I demo it and the order got fill and made like 3k as soon as the platform unfrozed... to bad it was fake money though

curious. which broker?

good question

my broker is FXDD. the chart is from the link i provided but not from FXDD for i use metatrader on FXDD.

expect nothing less.

At 21.39 GMT FXDD is already close for weekend. They closed at 21.00 GMT/16.00 EST.

That's what Fridays do in forex: teach us how to hate them...

Looks like north on the GBPJPY will be a slow mover and will take a lot of funds to take move much further north. Hopefully next week will move better than it did this past week.

http://fxtrade.oanda.com/resources/t...rs_GBP_JPY.png

here:

http://i34.photobucket.com/albums/d1...ee/hereugo.jpg

Ah that's 21.39 FXDD's MT4 time. Since that time, it went down to 234.27 (Bid). GBP/JPY spread in FXDD is 10. So ask price was 234.37 at the lowest point. Just 2 pips from your limit buy.

I think that the first thing you need in order to trade the G/J is to be aware of this simple relationship:

Price of G/J = U/J x G/U.

This works for all the J crosses too:

E/J = U/J x E/U, etc.

Everyone should sit down themselves and play with the permutations, but here's a couple:

Trade a $+ NFP-U/J and G/U will move inversely as they do most of the time anyway as the $ strengthens. However the G/J WILL LOSE on the G/J if let's say the $ gains 100 pips against the G, but only 40 on J.

If G/U and U/J lose and gain the same # of pips-you'll get less pips on the G/J then you would have trading the G/U or U/J.

If U/J gains more then the G/U drops-you'll get more pips trading the G/J then then G/U or U/J.

Now look at the daily charts for FEB 27-you'll see the G/U and U/J moved together (down). That's rare and that's why G/J lost a much bigger # of pips then either-simple arithmatic. When the markets crashed-they sold the $ vs Yen and bought the $ vs GBP.

So if you want the big pips on the G/J-you need to trade when for example the BoJ looks to be raising rates at the same time that the BoE looks to be holding or cutting-like a day when Tokyo CPI is up and UK CPI is down. Here's an example:

Tokyp CPI comes put strong and U/J goes from 118.50 to 117.75
UK CPI comes out weak and G/U goes from 1.9650 to 1.9600

G/J start of day price 118.5 x 1.9650 = 232.85
G/J end of day price 117.75 x 1.9600 = 230.79

Difference = -206 pips for the G/J

That's how it's done.

is it me thinking slow after the weekend or you wrote in too complicated way, but I can't get your point sry ...I didn't get some of yout short forms that u used "Trade a $+ NFP-U/J ".... could you clarify ?

so how much is a pip when trading g/j?

Sorry-what I meant was what could happen if you trade the G/J after the NFP prints $ positive (stronger then consensus).

The G/J could lose or gain pips. G/U is a smaller number then the U/J so the same # of pips is proportionally higher.

After an NFP like this, if the $ gains say 100 agaisnt the GBP and only 40 agaisnt the JPY, the G/J will lose pips.

Pre NFP G/U 1.9650
Pre NFP U/J 119.50
Pre NFP G/J 234.81 (G/J = G/U x U/J)

Post NFP G/U 1.9550
Post NFP U/J 119.75
Post NFP G/J 234.11 G/J is -70 pips

Use the same Pre NFP numbers again
Post NFP G/U 1.9600
Post NFP U/J 120.50
Post NFP G/J 238.18 G/J is +137 pips

Now most of the time when the NFP prints +, the $ moves the same against the majors. Even in that case, you're better off trading the $, because on these even pip moves G//J will gain, but it will be a few pips less then trading the G/U.

However, you'll likely be better off longing G/J on UK + news then say G/U.

Let's say UK CPI prints very strong and it looks like the bank will have to raise rates. In that case G/U might go up 80 pips while U/J stays about the same.

In that case, using the same pre-event numbers as before, the G/J would gain 96 pips compared to the G/U's 80.

The best thing to look for is either UK/JPY +/- news or the reverse.

Most traders would trade G/U with UK news and U/J with JPY news. You'll get much bigger moves with the G/J in this case. Using the same pre-event numbers, let's say there's UK+ news and JPY- news

Post UK News G/U 1.9730
Post JPY News U/J 120.00
Post News G/J 236.76 G/J is +195 pips when the G/U went up 80 pips and the U/J went up 50 pips

So there's a few ways to use this info. If you're trading the G/J from US data-I don't see that as a good idea. If you're trading the G/U from UK data or the U/J from JPY data-then I see G/J as a much better trade.

Some of us are used to trading G/U and catching 50-60 pips at a clip, which is a lot. If you get into a good G/J trade, especially when then UK and JPY data is inversely related, don't close your G/J trade so soon.

Now you know why there's so many more pips available in the G/J and you know the best times to trade it. You also know when not to trade it. You can use this info for all the JPY crosses because they all work the same.

Newstraderfx-Thanx 4 the informative bit on G/J. Really helpful as I trade only G/U & G/J

Goodness-My broker offers 8.51 $ per pip on a standard lot of G/J