Trade Closed: 2009-09-17 09:56
It looks like EURJPY sellers were no where to be found in this bullish market as the falling trendline failed to hold this time and EURJPY found its way to my stop out level.
Stopped out at 134.60
Total: -75 pips/ -1.0% loss
My mini win streak has come to an end, but that’s all part of the game and why it is important to remember traders are “risk managers first!” Not every trade goes our way and we have to make sure we live to trade another day!
Well, EURJPY looks to head higher back to the top of its range around 139.00 – 140.00. If USDJPY and equities continue rally higher, we may see that in the coming weeks, but for now… i’m out of the markets for the rest of the week to relax and reset before jumping back in. Thanks for checking out my blog and stay tuned!
Trade Update: 2009-09-16 15:11
Good afternoon! After a few days of waiting, and watching my trade nearly trigger a few times, my short EURJPY is in play as the market finally rises to the falling trendline. There’s nothing to do now but wait and see if this area holds as resistance. If I am still in the trade by the end of the week, I may close the position to avoid weekend event risk. Stay tuned!
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Trade Idea: 2009-09-14 23:09
Good evening! It looks like another simple technical setup on EURJPY as the pair heads higher towards a falling trendline. Will it retest and go with the trend?
Really, that’s about it as far as technical analysis goes. The falling trendline has been a point of reversal in the recent past and the question is “will market retest and will sellers be ready to short once again?” With stochastics not yet indicating overbought conditions, the rally from support may not be done and may reach the trendline area. If it does I look to go short in that area and target previous support.
A quick look at the fundies and we got have slight positive revisions to eurozone industrial production and employment data, but it still remains weak. The Japanese Yen continues to benefit from US Dollar weakness and speculation that the Democratic Party of Japan will not intervene in currency markets to curb recent appreciation in the Yen. Japan’s industrial production also surprised to the upside, posting gains in June and July, supporting the Yen further.
Today’s forex calendar is packed with data from the eurozone and may bring some volatility to today’s price action. Hopefully, just enough to trigger my short entry orders at the falling trendline. Here’s what I am going to do:
Short EURJPY at 133.85, stop at 134.60, pt1 at 133.10, pt2 at 131.50
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
Stay tuned for updates and adjustments!