Cross-Eyeing: EUR/JPY – Close Trade

Close Trade: 2009-04-15 07:30

Shortly after I posted my idea, EUR/JPY made a double bottom on an intraday basis and buyers were ready to push the pair higher. My first profit target was hit, but with potentially volatile US data coming up, I have decided to close out my position.

First half of trade closed at first profit target (131.30). Remaining position closed at market (131.40).

1st Half: +130 pips
2nd Half: +140 pips
Total: +1.038% gain

I wanted to get out of the way of news that may potentially bring back risk aversion to the markets. I will continue to watch this pair and if it does go higher throughout the day, I will look for areas to grab a short opportunity to play my weak euro bias. Stay tuned!

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Trade Idea: 2009-04-14 23:38

crosseyed chart

Good evening my friends! Tonight there appears the EUR/JPY is back at a rising trendline on the four hour chart. Will there be enough buyers to support the trendline or will the current euro sell off push the pair to break?

So, a very simple technical setup as I go with the longer term trend higher. Stochastics are in oversold territory, indicating that the market may have run out of sellers.

Sentiment may return to risk aversion mode tomorrow as recent US data (inflation and retail sales) has signaled that we won’t see the end of the recession anytime soon. This sentiment may continue tomorrow with more data coming from UK housing and a lot of US data. Weakness is expected in US CPI, manufacturing, and jobless claims. Is this already “baked into the cake?” Well, see but I think I will wait for a better price at 130.00 (psychologically significant number) to try to jump back in the trend higher. Here’s what I am going to do:

Long EUR/JPY at 130.00, stop at 128.70, pt1 at 131.30, pt2 at 132.70

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

If I do get stopped out, I will look to do a reverse trade as the pair breaks the rising support line. Stay tuned!

6 comments

  1. calcal168

    This is not a good trade I think, price action for today is a bearish outside bar. The price action tell us shorting the EJ is very risky.

    Reply
  2. calcal168

    This is not a good trade I think, price action for today is a bearish outside bar. The price action tell us shorting the EJ is very risky.

    Reply

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