After the fireworks of the FOMC meeting and interest rate decision the previous day, it was no surprise to see markets absorbing the news and trading in congestion before devloping stronger trends later in the session. As Europe and London forex markets opened it was clear from the currency strength indicator on the faster timeframes, virtually every currency was moving sideways and with no firm direction, which reveals another aspect of the indicator. Whilst we use it to identify reversals and strong trends, it is equally powerful in identifying those currencies which are moving sideways and therefore not ones to consider at present. The GBP/JPY was one such pair congesting around the volume point of control and highlighted on the currency strength indicator for MT5 and NinjaTrader.
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