The Power of JPY indicator for MT4 measures the relative strength of the Japanese Yen currency in real-time.
When the relative strength of the JPY currency is strong (above the zero level), trade it against a weak currency.
For instance, when the Japanese Yen is strong, and the U.S. Dollar is weak, sell the currency pair (USD/JPY).
Please note that the U.S. Dollar is the base currency and the Japanese Yen the counter currency.
Vice versa, when the relative strength of the JPY currency is weak, trade it against a strong currency.
For instance, when the Japanese Yen is weak and the U.S. Dollar is strong, buy the currency pair (USD/JPY).
- The Japanese Yen is considered strong when its relative strength is trading above the 0.00 level.
- The Japanese Yen is considered weak when its relative strength is trading below the 0.00 level.
Key Points
- Power of JPY above the 0.00 level is considered strong. Trade against a weak currency.
- Power of JPY below the 0.00 level is considered weak. Trade against a strong currency.
- Confirm the buy or sell trade entry with other analysis tools.
- Works for any Forex pair with the Japanese Yen included.
Free Download
Download the “Power_of_JPY.ex4” Metatrader 4 indicator
Indicator Example Chart
The USD/JPY daily chart below displays the Power of JPY Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Power of JPY Forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade as soon as the Power of JPY relative strength crosses the 0.00 level upwards and the counter currency is weak.
Place a stop loss 5 pips below support or apply your own favorite stop loss strategy for buy signals.
Close the buy trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Sell Signal: Open a sell trade as soon as the Power of JPY relative strength crosses the 0.00 level downwards and the counter currency is strong.
Place a stop loss 5 pips above resistance or apply your own favorite stop loss strategy for sell signals.
Close the sell trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Download This Forex Indicator
Download the “Power_of_JPY.ex4” MT4 indicator
Adjustable Parameters & Settings
Colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Recommended Currency pairs: Any
Trading Platform: MT4
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Currency strength
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.