Most currency traders are short-term orientated so the RRG above is a daily chart showing the rotation of the Norwegian Krone and the Japanese Yen vs the US dollar.
You can easily re-create this chart by selecting the pre-defined group "G10-FX USD base" from the drop-down box on the RRG page and set the interval to daily. The chart will show all G10 currencies related to the USD. Ie, 9 currencies on the RRG and USD as the benchmark in the center.
In the RRG above I have only selected $NOKUSD and $JPYUSD to display to get a clearer picture of the rotations I want to focus on.
Tails at opposite RRG-heading
As you can see these two tails rotate in opposite directions, almost directly opposite.
Three to five days ago the Norwegian krone turned into a 0-90 degree heading and the day-to-day distance on the tail started to increase. The Japanese Yen, a day or so earlier, turned into a 180-270 degree heading after a brief trip through improving and jumped back into lagging while also showing increased day-to-day distances on the tail.
This rotation indicates strength for NOK and weakness for JPY.
The $NOKJPY is not a very commonly traded pair which means that not too many people are looking at it. As a matter of fact, $NOKJPY is not available on the system as a symbol as such. But... we can create that relationship by entering $NOKUSD:$JPYUSD on a SharpChart.
This will give you the picture below.
The (false) break that occurred late May serves as a good example of a break that reverses back into a range subsequently pushes back to the opposite side of that range, in this case, a test of the upper boundary around 0.139. It is also a good example of why using stops in currency trading makes sense.
After the recent test of the lower boundary NOKJPY is now traveling back towards the 0.139 area.
I am watching this NOKJPY cross for a break above that resistance level and then accelerate towards the next resistance level near 0.143. Stops then just below the breakout level.