This one is the best currency pair to trade today

Forex Market Analysis

Hey trader, hope everything is going well…

I have a question for you, have you had a chance to look at my previous articles? If you haven’t, please take some time to take a look at them…

They will save you money and a lot of time! They’ll help you understand how the market how the market works, how to choose the right instruments to trade, how to take advantage of them, etc.

Here are the links:

Important aspects of my strategy
Market Dynamics: How the market moves
When to go Long and When to go Short
How to find profitable Breakout Signals
How to take retracement signals

I’ve been looking at charts for more than 12 years, I’ve tried everything… What you see on those articles, is exactly what I think works best to get results.

What I like the most about it, is that you can even combine it with your own strategy…

Ok, lets go through some charts now!

AUDJPY Long Term Analysis

I want you to take a look at the weekly chart:

AUDJPY Weekly

What do you think?

Its quite clear what the market is likely to do isn’t it?

There are a few things that you can get out from this chart:

  • The AUDJPY is trading in a very clear bullish condition
  • It’s got clear S&R levels
  • Looks likes it is being rejected from an important support level

You can do marvelous things with these information, thats is exactly what tells you that the AUDJPY is ready to be traded.

When you have a clear condition, you know what the market is likely to do, if its got clear S&R level you know until when the market is likely to continue moving up, and finally, if the market is being rejected from an important support level, you know that it is likely to continue to moving up.

You see!!!

Now you can look at the short term charts for your signal, using any kind of system that you want.

AUDJPY Short Term Analysis

Now, let me show you the short term chart:

AUDJPY Hourly

The safest way to take a trade is:

Breakout signal, wait for the AUDJPY to break through the previous high around 93.94.

Can we still get a retracement signal?

Yes we can, if we get enough pressure in this 30M candle (or on the 1H candle), we might get a good signal to go long just where the AUDJPY is currently trading at.

Remember you need to follow the 3 rules that validate every retracement signal.

Your Turn

What other currency pairs are you trading?

What do you like better, retracement or breakout signals?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • RuwiniW

    I opened a trade at 93.28 on 26th, the first day you published this idea. Going well. Thank you very much. I will open another one after it pass short term target.

    • Raul Lopez

      You mean you will add once the market breaks through the previous high right?

      • RuwiniW

        No I have opened a trade at 93.28 and already has 30+ pips and I will open another one it passes that short term target.

        • RuwiniW

          Yes, I got the point. I closed that my first trade with the profit of 30 pips and waiting for the break through. Thank you very much for your advice.

          • Raul Lopez

            Ahhh ok ok.

            Good luck Ruwini! We’ll see how the AUDJPY plays out!

  • Varahala Babu

    hi raul….in the previous article you have written about EUR/USD short signal if it Breakout of the previous low 1.1100 . is it still valid ? can we place sell trade below 1.1100 ?

    • Raul Lopez

      Hello Varahala,

      No I wouldnt, that’s a LT level… and I only place my trades based on the short term levels…

      Good luck!

  • Tradman

    It might come back to retest the 92.43 level before taking off. I think I’ll wait for that. Totally agree with the opportunity waiting for us!

    • Raul Lopez

      Yep, the short term charts arent that clear anymore… I’ll wait a little longer until we get clearer levels on the short term charts!

  • Varahala Babu

    hi raul….can we go long on GBP/JPY if it breaks the highest high of the 1 hour range ? and for long trade in AUD/JPY how many pips of highest high should be placed for buy stop order ?

    • Raul Lopez

      For the GBPJPY, it has been rejected only once from the upper ST resistance level, and for that reason, I’d rather wait for a retracement to the bottom of the range and take a signal from there… Once it gets there, the other possibility would be the breakout…

      For the AUDJPY, its no longer clear Varahala… I dont like the way its being trading in the ST charts anymore, thats the reason I’d like to wait a little longer here and see how things work out in the following days!

      Good luck!

  • Chad Hogan

    Raul,
    OK, just a misunderstanding It makes perfect sense
    We’re on the same page after all
    Cheers

    • Raul Lopez

      Hey Chad, I’m glad we are…

      What other pairs are you monitoring Chad?

  • hira

    hi raul im open to what the priceaction tells me what to do im a trend follower so this would cause me to be neutral at this point until the price action tells me other wise … if I had a setup I use at the zone we are trading at now I would have set the order with the current momentum but I have no trigger and does not tick the boxes for my plan .. thanks raul …

    • Raul Lopez

      Hey Hira, its always good to see different point of views…

      Right now, I think the AUDJPY might start a new trend (uptrend), since its being rejected from the bottom of the range, but of course, we need to wait for our confirmation before we can call that an uptrend…

      Only time will tell Hira…

      Good luck!

  • Chad Hogan

    Raul,
    I have this pair trading at an important level around 92,95? I agree with your LT lines on your weekly chart, but on the daily chart price has only broke it once since being rejected twice from there previously,(sorry fullstop button doesn’t work on computer,)
    Haven’t you got your blue line on 93,32? I’m waiting for a break out and then I’ll look for long opportunities,
    Well spotted
    Chad

    • Raul Lopez

      You are right Chad, there is an important level on the daily chart!

      Which is exactly what I had around the SF box, which you can see on my short term charts above (I dont have a blue level there because its a web based charting package, not MT4)… Once it broke through that level up, I started to look for long opportunities…

      But now we have a different story Chad, since the market broke that level again in the short term charts, and started to trade again inside the range… we need to move that level up a bit, and wait a little longer until the market breaks that new level again…

      Does it make sense?

  • hira

    agree raul if it can take the high we are good to buy any weakness and that’s a very smart play you are playing … i want a signal thou so ill sit this out for now heres why …

    • hira

      4hour

    • Raul Lopez

      Yep, I agree… if it can take that high, it will definitely skyrocket…

      Good luck Hira! Are you going to take this trade?

  • Brian D

    Thanks for sharing your strategy Raul. Community building is always the way to go. Interesting 20 SMA turn?, and I agree about letting price prove momentum through breakout behavior. Be well.

    • Raul Lopez

      Hey Brian,

      Hope that MA plays on our favor… Do you use it for trend following?

      Good luck!

      • Brian D

        Thanks Raul. Well, I learned “20 SMA turn”recently from BKForex. I am working on understanding Daily chart sentiment better, so I can capture market cycle breakout events…slowly but surely…your perspective is very refreshing…all the best. Brian

  • Krishan Lal

    Again good work. Few things get together can really change the whole scenario they way you think but keeping things simple as you have gives you an edge but momentum is what we need and I really want a sharp move to give me confidence that trade is on because exhaustion signal of bullish market is already there at high as sideways market has been rejected of multi-year high and you need Immediate reaction otherwise result can be sideways to down.

    Thanks a lot for you Ideas. I really appreciate the way you think and helping traders to gain confidence without any help from charts

    regards
    Krishan Lal

    • Raul Lopez

      Yep, that’s the reason I favor a breakout, I hope my order gets triggered!

      I’m glad my articles have been helpful Krishan!

      Let me know if you have any question about them!

  • Adrian Friday

    Thank you Raul

    • Raul Lopez

      No problem Adrian!

      What other pairs are you currently monitoring?

  • Varahala Babu

    hi raul…..good trade…i have put the breakout order….thanks

    • Raul Lopez

      Good luck Varahala, hope it gets triggered!