Cross-Eyeing: EUR/JPY

Trade Idea: 2007-01-31 13:40

Our short term trade was stopped out at a loss as our position was whipsawed after today’s slew of economic reports. Again, another frustrating trade as we watched the pair go back into our direction and nearly reaching full profitability.

1st Half: -25 pips
2nd Half -25 pips
Total: -50 pips

Trade Idea: 2007-01-31 08:33

crosseyed chart

Here is a nice technical setup on EUR/JPY using the Fibonacci retracement tool on the hourly chart. The pair has been trending lower from it’s previous high at 158.13, and it is currently retracing up after hitting 156.81. We can possibly jump in this short term downtrend which seems to have formed on the risk of carry trade liquidation.

I’ll wait for the pair to retrace back up to 157.50 before jumping in short. Here’s a trade idea:

Short EUR/JPY at 157.50, stop at 157.75, pt1 at 157.25, pt2 at 156.85

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!