An introduction to the JPYX index for Tradestation securities
In this video we provide an introduction to the JPYX index for Tradestation securities and if the US dollar is the primary currency to consider in any analysis of the forex market, the secondary one is the Japanese yen, and yet there are almost no indices which track this in a similar way. But once again, we have the answer and have therefore developed the JPYX index for the MT5 platform. This is based on the FXCM/Dow Jones index, and takes four major currencies, with an equal weighting to deliver the JPYX index as follows:
- Australian dollar (AUD) – 25%
- New Zealand dollar (NZD) – 25%
- Euro (EUR) – 25%
- US dollar (USD) – 25%
Once again, the index is based on a notional 10,000 mini lot contract size. It is our belief that this simple index provides a ‘real world’ view of strength and weakness in the Japanese yen which is equally important in terms of risk analysis. Whilst the US dollar has increasingly been adopted to fund the carry trade, the Japanese yen remains the key currency in this respect, and with flows into and out off risk assets remaining pivotal for the currency, having an index to track it’s performance against other key currencies is crucial.
Like the QuantumUSDX indicator and the Quantum DXY indicator, the Quantum JPYX indicator can be used in one of three ways. First, as an inverse indicator to a major currency pair, helping you get in, stay in and get out. Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies. Finally, as the ultimate barometer of risk, in other words risk on and risk off flows which drive all the financial markets.
Whichever approach you adopt, you will no longer have to leave your Tradestation platform for a view of the Japanese yen! In addition, the indicator is also supplied with two moving averages already applied, the 8 SMA and the 14 SMA to help provide you with further insights into market direction. And as you might expect the the Quantum JPYX indicator works in all timeframes.