Cross-Eyeing: EURJPY – Close Open Orders

Close Open Orders: 2009-08-25 16:42

What is up! Looks like I couldn’t catch a break during today’s trading session as my short orders at 136.00 never triggered. It was a volatile day for EURJPY as the pair fell to 134.00 during the Asia and European trading session then rallied to just under 136.00 during the US trading session. My short orders were missed by less than 10 pips! It was an opportunity missed as sellers pushed EURJPY back down for the rest of the US trading session.

With the lower highs the pair is making on the one hour and four hour charts, it looks like that buyers are somewhat in control for now and I am removing my short orders at 136.00. If that rising trend breaks I may jump in short again on this pair, so I will just have to wait and see what the market gives me. Thanks for checking out my blog and stay tuned for new updates!

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Trade Idea: 2009-08-24 17:52

crosseyed chart

Good afternoon Forex geeks! I’m back for another week of trading and it looks like EURJPY may provide the opportunity of the week. Will the pair move lower after testing previous resistance?

On the four hour chart, I have highlighted areas of previous resistance and interest around 136.00. The pair has recently tested that level, but with tons of data coming out in the upcoming trading session, we may see volatility push the pair up to retest that resistance area. I like a short play if this area holds, and I think the probability of success is high as stochastics are indicating that the recent rally may be overdone and that the market has run out of buyers in the short term.

Again, we do have a lot of European data, mostly from Germany, as well Japanese merchandise data coming up. Also, risk trends are highly influenced by US events, so the plethora of US housing data later today may sway risk tolerance one way or another at the end of the European trading session/ morning US trading session.

If we do see a retest of 136.00 and the falling trendline, I am going to short EURJPY. My stop will be a little more than half the daily ATR (200) since the market has to move up 100 pisp to hit my entry point. My profit targets will be the minor support at 134.50 and the major support around 133.00.

Short EURJPY at 136.00, stop at 137.50, pt1 at 134.50, pt2 at 133.00

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.

If we don’t see a trigger today, there’s plenty of data on the Forex calendar during the rest of the week to move this volatile pair. Stay tuned and stay flexible!

  • JohnStarlo

    Can someone tell me what is ATR? I saw it in the article. I figure that it is some form of average but I still need to know and how it is calculated.

  • pipsprof.

    John, ATR means average True Range, i.e the average daily movement in simple language.hope u get it.Cross eye,thanks for this analysis,i hope it triggers,am with u all the way.

  • pipsprof.

    Cross eye,on a second thought,dont u think by the time this pair gets back to 136.00,it would have violated the downward channel upwards and putting us at the risk of moving continously upwards?i think we should be more cautious with this trade,thanks

  • JohnStarlo

    Can someone tell me what is ATR? I saw it in the article. I figure that it is some form of average but I still need to know and how it is calculated.

  • pipsprof.

    John, ATR means average True Range, i.e the average daily movement in simple language.hope u get it.Cross eye,thanks for this analysis,i hope it triggers,am with u all the way.

  • pipsprof.

    Cross eye,on a second thought,dont u think by the time this pair gets back to 136.00,it would have violated the downward channel upwards and putting us at the risk of moving continously upwards?i think we should be more cautious with this trade,thanks

  • dreknar

    The pair generated a buy signal but using the ishimoku method, let us be cautious on this one

  • dreknar

    The pair generated a buy signal but using the ishimoku method, let us be cautious on this one