Scalping Short-Term Market Momentum

Focus: FOREX

The EUR/JPY has advanced 327 pips from the November 21 open. As December trading begins, short-term market momentum can be used to identify fresh scalping opportunities, writes Walker England of DailyFX.com.

Trading a scalping strategy in the forex market first requires traders to find and identify short-term market momentum. Regardless of the strategy we ultimately end up executing, it is always imperative to have a trading bias to determine if we are looking to buy or sell a currency pair prior to moving in on a shorter-term graph. Today, we will review the ongoing EUR/JPY trend uptrend and see if there is an opportunity for continued upside momentum.

The EUR/JPY has been on our radar for some time now and was recently discussed in our previous discussion on market momentum. Since this point, the pair has advanced as much as 327 Pips from the November 21 market open. With price now attempting to breach previous highs, we will turn to our building blocks to find the key points in short-term momentum in order to find scalping opportunities.

EUR/JPY 4-Hour Trend

chart
(Created using FXCM’s Marketscope 2.0 charts)
Click to Enlarge

EUR/JPY Building Blocks
Pictured below we can see our current building blocks, outlining market momentum using the EUR/JPY 30 minute graph.