You can now download the Yen Breakout Forex Trading Strategy for free on AtoZ Markets indicators gallery.
This strategy will solely be traded on the USD/JPY pair since these currencies sometimes go in different directions especially during times of shifting global market sentiment.
Today we are going to do a simple strategy that works during strong breakout days specifically for the USD/JPY pair.
But before that, let’s first discuss the uniqueness of the Tokyo market and the Yen in order for us to understand why this strategy works on specific days.
Because of its location and size, the Tokyo market is quite unique, and this uniqueness offers traders an opportunity to ride its waves. The Tokyo market is the first major market to open. Yes, the Aussie market does open prior to the Tokyo market, but the Aussie market is just not as big to make an impact.
The blue box above represents a whole Tokyo session during a breakout day. Notice how price steadily climbed up every hour throughout the day and retraced with only one bearish 1-hour candle.
How to trade with Yen Breakout Forex Trading Strategy?
- Wait for the close of the first-hour candle of the Tokyo session.
- After the close of the candle place pending Stop Entry Orders a few pips above the high and the low of the candle. Whichever stop order gets triggered first will be our setup.
- Cancel the opposite pending Stop Entry Order as soon as one Stop Entry Order is triggered.
- Buy Setup: Initial Stop Loss will be at the same price as the Sell Stop Entry Order.
- Sell Setup: Initial Stop Loss will be at the same price as the Buy Stop Entry Order.
Exit: Trailing Stop
- Buy Setup: Trail the Stop Loss a few pips below the most recent candle close until the trade is stopped out in profit.
- Sell Setup: Trail the Stop Loss a few pips above the most recent candle close until the trade is stopped out in profit.
- If the trade is still open as the Tokyo session ends, close the trade at the close of the Tokyo session.
NOTE: If the candle after the first hour doesn’t break out of the first-hour box, cancel all pending orders.
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the top right corner of the screen.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Yen Breakout Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.