Cross-Eyeing: EUR/JPY – Trade Closed

Trade Closed: 2008-10-20 10:41

My trade closed on Friday as EUR/JPY rallied at the end of the day back to my adjusted stop at break even.

1st Half: +150 pips
2nd Half: +00 pips
Total: +0.5% gain

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Trade Adjustment: 2008-10-17 09:38

My short orders were triggered at 137.20 during the Asian trading session, and it looks like sellers jumped in at the resistance and pushed the pair lower. My first profit target was hit and half my position was closed, so it’s time to make a few adjustments.

Half trade was closed at 135.70 to lock in profit. Adjusting stop on remaining position to breakeven (137.20) to create a risk free trade.

I am going to hold onto this trade, but close at the end of the day (or if second profit target is hit) to avoid weekend event risk. Stay tuned!

Trade Idea: 2008-10-16 19:52

crosseyed chart

Greetings! There’s another opportunity to jump into the downtrend in EUR/JPY as the pair rallied today during the US trading session. I’m still bearish on the pair based on the sentiment we are in the midst of a global recession and the approach resistance area may be a great place for sellers to watch.

I have the one hour chart pulled up and it looks like the pair is testing the minor resistance area that was once support, as noted on the chart. Stochastics are in overbought levels, so we may see a short term reversal on the pair and possibly a march back down to 133.00.

Fundamentally, the main theme is still the credit crunch and throw in the possibility of a global recession killing risk tolerance and carry trades, it looks like we’re still in for more losses in the Euro against the Japanese Yen.

It’s been a crazy, volatile market, so I’ll be using a wide stop to give the trade a chance to be right. Here’s what I’d like to do:

Short EUR/JPY at 137.20, stop at 138.70, pt1 at 135.70, pt2 at 133.50

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

12 comments

  1. misterboy

    I saw that setup but it was AFTER it touched the 61.8 retracement level and was already moving down so I didnt enter it. But I could’ve because it continued down!

    Reply
  2. misterboy

    I saw that setup but it was AFTER it touched the 61.8 retracement level and was already moving down so I didnt enter it. But I could’ve because it continued down!

    Reply
  3. misterboy

    I am watching it right now, and its going down from the 38.2 level again. 38.2 looks like a good resistance level.

    Reply
  4. misterboy

    I am watching it right now, and its going down from the 38.2 level again. 38.2 looks like a good resistance level.

    Reply

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