Close Open Orders: 2009-11-24 00:15
Good morning! It looks like I couldn’t catch a break on GBPJPY as I missed the initial break of the symmetrical triangle, and now the market failed to make it up to my short entry point at 148.50 on the retracement.
It looks like the pair has bottomed out in the short term at previously tested resistance (around 146.50) and may even move higher from here as markets continue to be rangebound and choppy. It’s possible we may even see a retest of 150.00 this week as risk tolerance is back in play after positive data from the US today. With that said, I think I will close my short entry orders at 148.50 and look for another opportunity.
A lot of good moves in the pair, but I just wasn’t able to catch any of it. Hopefully, the pair will retest 150.00 as that where I will be looking for another opportunity to short. Stay tuned!
Trade Idea: 2009-11-19 12:53
Finally! On my last blog entry, I was watching the symmetrical triangle and waiting for a breakout to put a position on. After waiting for a week, a breakout lower on GBPJPY has finally come through at the open of today’s Asia trading session. It was a strong move lower before finding support around 147.50 and retracing just a bit higher.
I look to take a short position if the pair retraces all the way back up to the Fibonacci retracement levels marked on the chart above. Stochastics are still indicating oversold conditions on the one hour chart, so the retracement may not be done quite yet.
My entry level will be at the 38% Fibonacci retracement level and my stop will be just a bit more than the average daily range of 180 pips, and I will ultimately target major support around 140.00. Here’s what I am going to do:
Short GBPJPY at 148.50, stop at 150.50, pt1 at 146.50, pt2 at 140.00
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
Thanks for checking out my blog and stay tuned for updates and adjustments!