An experiment with relative volatility index - NZDJPY
I'm just playing around with the Relative Volatility Index. A little used indicator which measures volatility. Rather than using this as a OB/OS with 50 level as reference point, I find the sharp peaks and troughs a good way to measure divergence. Here's an NZDJPY short trade as confirmed by the RVI and price action itself after breaking the trend line.
There are some nice hidden tricks within the RVI. I'll publish them as and when I find them to be valid.
Targets come in at 83.595 and expect a bounce before pushing lower to 82.147 or even 81.1 (very long term target).
Tonight Kiwi inflation is due... did a quick search and some local NZ news sites expect inflation to come out softer than usual. JPY has been gaining steadily across most pairs ahead of BoJ decision which is likely to remain flat. So putting it all together, shorts seem like the obvious trade on NZDJPY.
There are some nice hidden tricks within the RVI. I'll publish them as and when I find them to be valid.
Targets come in at 83.595 and expect a bounce before pushing lower to 82.147 or even 81.1 (very long term target).
Tonight Kiwi inflation is due... did a quick search and some local NZ news sites expect inflation to come out softer than usual. JPY has been gaining steadily across most pairs ahead of BoJ decision which is likely to remain flat. So putting it all together, shorts seem like the obvious trade on NZDJPY.