What did I miss???

Good Morning Dynamic Traders,

Hope the bad weather didn’t prevent you from having a good weekend. I enjoyed the rain at the Epsom Derby and I thoroughly enjoyed the hard rain and the harder hail stones during my bike with my grandfather on Sunday!

I’m going to round off the Yen and look to another currency pair to follow.
Friday saw the Yen enjoy a healthy climb as it smashed through the Value Index, this is brilliant news for the Yen, but why did this happen? The answer can be found on my fellow blogger, Bijal Shah’s update from yesterday. No doubt you have read her update, but Bijal has highlighted a head ‘n’ Shoulder formation on the day chart, which I had originally missed.
You may remember from last week, I said that I was little surprised that price didn’t fall further after the large Head ‘n’ Shoulder formation that I marked out. Price didn’t fall anymore because of smaller Head ‘n’ Shoulder, which was formed after the larger one. This is why price was able to beat the Value Index. I have marked this on the day chart below!!














I had originally missed the second Head ‘n’ shoulder formation, because I was focusing on an intra-day basis, and I forgot to look at the bigger picture. This is why it is important to make sure that you perform a thorough analysis, because I have missed out of potential profits from the Yen.
Moving forwards though, price is now above the Value Index, which means that price is likely to start using it as a support area, which will help to keep the Yen strong, so what will happen next??

Happy Trading

Richard Monnery