GBP/USD failed to break above 1.2537, traded to highs at 1.2445, then dropped 300 pips. EUR/USD is now challenged at 1.0830 to break or trade much lower. USD/JPY big line break at 138.61 failed to crack yesterday at 138.17 highs, then dropped. USD/JPY breaks higher then targets the 140s, an exorbitant target.
EUR/AUD achieved target highs at 1.5808 but then decided to travel 85 pips higher. The 85 pips are free money pips for shorts. Free money happens from the point when prices leave the range.
Termed the lost price for lack of a better word to describe another nuance of trade concepts. Or better highlighted as a lost star that left the constellation of normal prices.
All financial instruments suffer the same lost price phenomenon at some time in time. A lost price is generally a free money trade from 3 to 800 points or pips, as it applies to currencies. The only requirement for the trade is time, as mathematical certainty means targets must achieve by no other choice.
JPY cross pairs trade in the lost price category currently. Lost price trades are most specifically found in currency cross pairs and rare exceptions to USD Vs. Non-USD pairs, however, USD/JPY above 137.15 applies as well as USD/CAD. GBP/CAD currently applies to a lost price.
S&P 500 fails to offer a free money trade, but the lost price concept was demonstrated in years past. Fails at free money trades means a price ranges around, and traders must earn the money. This is the last aspect we want to earn money.
Known from the lost price trade is direction. For example, GBP/CAD and USD/JPY are short-only trade strategies. CAD/JPY was a lost price and dropped 300 pips this week.
NZD/JPY and AUD/JPY
Both NZD/JPY and AUD/JPY trade massive overbought, and both are lost, souls. NZD/JPY targets 84.79, 82.29, and 81.19. NZD/JPY trades against averages at 80.00s and 78.00s. NZD/JPY and AUD/JPY view as 3 to 500 pips max as both don’t hold the range power as GBP/JPY and EUR/JPY. This means both will achieve destination targets but much slower.
Watch NZD/JPY for a break at 86.11. AUD/JPY targets 92.46, 89.31, 88.45, and 87.93. Caution at 87.93. Watch for a break at 93.25, as AUD/JPY just broke below at the time of writing.