4/23 Forex

Parabolic sar bull signals showed on the forex charts as the yen weakened against the U.S. dollar (USD/JPY) and British pound (GBP/JPY). So did the Swiss franc against the dollar (USD/CHF).

All three of these currency pairs have low average direction indexes, and so are prone to whipsaws.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
USD/JPY ¥94.14

USD/JPY You are here:

• Reversal
• ¥94.78, +0.7%
• Now ¥94.14
• Reversal
• ¥91.59, -2.7%

The reversal levels mark the bounds of a sideways trend that has been in force since March 25. Limited upside potential.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
GBP/JPY ¥144.62

GBP/JPY You are here:

• Reversal
• ¥145.04, +0.3%
• Now ¥144.62
• Reversal
• ¥139.36, -3.6%

Like the dollar-yen pair, the cable-yen pair has been trending sideways since late March. There's very little upside potential.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
USD/CHF SF1.0743

The dollar-franc bull signal was marked by a gap up at the open today, but it has pulled back sharply and is showing a net decline intra-day. Not the most promising of bull patterns.

USD/CHF You are here:

• Reversal
• SF1.0849, +1%
• SF1.0785, +0.4%
• Now SF1.0743
• Reversal
• SF1.0501, -2.3%

The dollar-franc pair has been trending sideways since early February. There's far more downside potential than upside.

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These signals will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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