Cross-Eyeing EUR/JPY – Trade Closed

Trade Closed: 2008-04-11 14:45

Our trade closed yesterday as EUR/JPY found an intraday bottom at 159.00 where buyers jumped in to push the pair back to our adjusted stop price and beyond. Our trade was closed at 160.20 for a nice profit.

1st Half: +85 pips
2nd Half: +120 pips
Total: +1.025% gain

I hope everyone did well on this trade. Have a great weekend!

Trade Adjustment: 2008-04-10 09:53

Our position is seeing some nice gains as the Yen rises across the board on Asian currency strength. We may see a longer term move, and to take advantage of that possibility, we will adjust our trade to lock in more profits and adjust our final take profit levels.

Adjust stop on remaining position to 160.20 and adjust second profit target to 158.00.

The Singapore central bank raises the Singapore Dollar’s trading range and the Chinese Yuan is now above 7.00 per US Dollar. Look for the Japanese Yen to advance as traders view it as a proxy for asian currencies. Stay tuned for updates and good luck!

Trade Update: 2008-04-09 20:39

After patiently waiting since last week, we finally see some movement lower in EUR/JPY as Asian currencies gain strength. Our adjusted, first profit target was hit at 160.55.

Move stop on remaining position to breakeven to create a risk free trade.

The ECB is expected to to remain bullish tomorrow. Any commentary otherwise, or a surprise rate cut would certainly push the Euro lower across the board. Stay tuned for updates and possibly a quick trade adjustment after the rate announcements later today. Good luck!

Trade Update: 2008-04-09 11:45

And the Choppiness Continues! For those who have missed the resistance area around 161.40 the first time, you should have multiple opportunities to check it out as this pair continues to range.

Our position is currently trading around 161.00 now, and we may see the markets continue to hang around here for the time being.

I am going to make a slight adjustment to my first profit target, as the pair seems to find a lot of support at this level. I am adjust my first profit target to 160.55. Second profit target will remain the same. For those who want to reduce risk may want to close a portion of the position now.

Stay tuned and hopefully we will see a drop back lower ahead of the ECB interest rate meeting at 1145 am GMT. I may close the position ahead of that event so stay tuned around then.

Trade Update: 2008-04-08 20:50

Our trade has been ranging all day as buyers and sellers continue to battle around 161.00. We still have yet to see the pair close above the resistance level at 161.40, which should give us hope that sellers will win this battle out.

There is also regular bearish divergence on the 4hr chart as our stochastic indicator makes a lower high, while the pair has been making higher highs. I will continue to hold as I think we will continue to see range bound behavior until the ECB interest rate decision on Thursday. Stay tuned an good luck!

Trade Update: 2008-04-07 14:50

After a full weekend of waiting, our short orders were triggered at 161.40, where the pair found enough sellers to push the pair back below 161.00

Japanese Leading Index came in at 50.0, better than last month’s 36.4, hopefully give a little boost to our trade. The big event risk this week is the ECB interest rate decision on Thursday. We may not see a cut from the ECB, but the event to watch for is Trichet’s comments on future growth and the current financial crisis. Any dovish comments should propel our trade lower.

We will hold on for now. Stay tuned for updates and adjustments. Good luck!

Trade Update: 2008-04-03 16:54

Since we posted our trade idea, EUR/JPY rallied higher and found resistance as expected, but at 161.00 and fell back lower below 159.00. So, our trade did not trigger, but I think if we do see a run up back to 161.00, there’s a good chance sellers will hold it down. I will keep my orders to short open and continue to watch this pair for now. Stay tuned!

Trade Idea: 2008-04-02 13:30

crosseyed chart

Greetings! Today, we will take a look at EUR/JPY as it approaches a minor resistance level. We’ve seen this level hold off and reverse a rally recently back in February, so we may see some action there once again.

The move from 151.80 to its current levels may be in need of a breather as it has been almost a straight up move, with a little pause around 157.00. Overbought levels are indicated by stochastics showing the pair may be out of steam.

Short EUR/JPY at 161.40, stop at 162.40, pt1 at 160.40, pt2 at 158.90

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

Fundamentally, the financial crisis is still being sorted out, but fears of a deep recession in the US are abating…for now. Global risk has been growing as fears moderate, but we will have to see what happens throughout the week, especially after US Jobs report on Friday. Stay tuned!

  • baileys

    This would be the perfect set up for a Friday “reverse” trade, after this week’s non-stop run up by the euro. Will keep a close watch. Good trading to all!

  • baileys

    This would be the perfect set up for a Friday “reverse” trade, after this week’s non-stop run up by the euro. Will keep a close watch. Good trading to all!

  • enochbenjamin

    i don’t think it will make it to 161.40 or even 161 for that matter. looks like 160.70 is as high as this pup is going. But then again, what do I know?

  • enochbenjamin

    i don’t think it will make it to 161.40 or even 161 for that matter. looks like 160.70 is as high as this pup is going. But then again, what do I know?

  • comfibold

    Just banked 60 pips on your trade. Thanks dude!

  • comfibold

    Just banked 60 pips on your trade. Thanks dude!

  • demontez

    your trade hit the target today going down from it high of 161.47. I missed out on this trade as i did not get your blog on time. what time zone are you on? I am on GMT. do you see it going further down to Point 1:160.40 or point 2 : 158.40?

  • demontez

    your trade hit the target today going down from it high of 161.47. I missed out on this trade as i did not get your blog on time. what time zone are you on? I am on GMT. do you see it going further down to Point 1:160.40 or point 2 : 158.40?

  • cyclopip

    Hey Demontez, I am in GMT -4 (New York time)…. the emails are sent out end of day, so if you wanna catch our blog posts fresh, you’ll have to check back regularly. Sorry. There’s no set schedule time for our posts as we only put up ideas when the market presents an opportunity. I don’t know if we will hit the targets, but I am short biased for the reasons stated in my post, and I think markets will continue to reduce risk and leveraged plays. We’re pretty close to our first target now, so hopefully we will hit it. Good luck!

  • cyclopip

    Hey Demontez, I am in GMT -4 (New York time)…. the emails are sent out end of day, so if you wanna catch our blog posts fresh, you’ll have to check back regularly. Sorry. There’s no set schedule time for our posts as we only put up ideas when the market presents an opportunity. I don’t know if we will hit the targets, but I am short biased for the reasons stated in my post, and I think markets will continue to reduce risk and leveraged plays. We’re pretty close to our first target now, so hopefully we will hit it. Good luck!

  • demontez

    Cyclopip, i fell very sad this morning. I was holding on to this trade as at yesterday afternoon it looked as if the pair was going to test the 16171 resistance point again so i closed by trade as at yesterday only for this morning to see that it has meet the first target profit and heading now to second target profit

  • demontez

    Cyclopip, i fell very sad this morning. I was holding on to this trade as at yesterday afternoon it looked as if the pair was going to test the 16171 resistance point again so i closed by trade as at yesterday only for this morning to see that it has meet the first target profit and heading now to second target profit