The best indicator for EUR/JPY
We backtested 366 indicators across daily, weekly and hourly charts on real EUR/JPY history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Fisher Transform
On the daily chart, this is the strongest risk-adjusted edge we found for EUR/JPY over ~24.1 years — beating buy-and-hold by 7.3% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for EUR/JPY — beating buy-and-hold by 7.1% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | Fisher Transform ✓ | Daily | 8.8% | 1.18 | -34.4% | 37.6% | 566 | 7.3% |
| 2 | Parabolic SAR (fast) ✓ | Daily | 7.6% | 1.03 | -36.2% | 38.0% | 437 | 6.0% |
| 3 | DMI Direction ✓ | Daily | 6.3% | 0.94 | -19.0% | 36.6% | 276 | 4.8% |
| 4 | DeMarker (7) ✓ | Daily | 6.6% | 0.94 | -22.9% | 39.9% | 406 | 5.0% |
| 5 | Parabolic SAR ✓ | Daily | 5.5% | 0.76 | -32.5% | 38.9% | 293 | 3.9% |
| 6 | Vortex (7) ✓ | Daily | 4.7% | 0.67 | -31.3% | 36.4% | 428 | 3.1% |
| 7 | Impulse MACD ✓ | Daily | 3.3% | 0.66 | -26.9% | 33.6% | 345 | 1.7% |
| 8 | DeMarker (14) ✓ | Daily | 4.2% | 0.63 | -26.2% | 35.3% | 303 | 2.7% |
| 9 | DeMarker (21) ✓ | Daily | 3.5% | 0.54 | -18.9% | 39.6% | 268 | 2.0% |
| 10 | Vortex ✓ | Daily | 3.5% | 0.51 | -23.0% | 36.5% | 301 | 1.9% |
| 11 | CCI Trend ✓ | Daily | 3.4% | 0.5 | -19.5% | 32.2% | 301 | 1.8% |
| 12 | Random Walk Index ✓ | Daily | 3.3% | 0.49 | -20.3% | 37.7% | 300 | 1.7% |
| 13 | Random Walk Index ✓ | Daily | 3.3% | 0.49 | -20.3% | 37.7% | 300 | 1.7% |
| 14 | CCI (14) ✓ | Daily | 3.2% | 0.48 | -29.0% | 37.2% | 368 | 1.7% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For EUR/JPY, Fisher Transform on the daily timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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