
Let’s take an example of how to use charts by looking at the pair USD/JPY. The price represented on the vertical axis is usually the JPY. If the USD rises and the JPY falls then the base currency (the USD in this case) reaches a peak and the diagram is going upwards then it’s wise to buy dollars. On the other hand if it’s going downwards then the price of the USD is falling and it’s wise to sell the dollars at this point. If we look at another pair like EUR/USD for instance, you will find a change as the base currency changed, so if the chart goes up then buy Euro if it goes downwards then sell the Euro.
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