Cross-Eyeing EUR/JPY – Trade Closed

Trade Closed: 2008-05-08 14:36

Our short position on EUR/JPY closed earlier today as the pair hit our second profit target at 160.00 during the Asia trading session.

1st Half: +100 pips
2nd Half: +250 pips
Total: +1.75% gain

I hope everyone did well on this trade and stay tuned for a possible new trade idea on the same pair as it looks like we may see this bad boy retrace all the way back up to 161.00. Stay tuned!

Trade Adjustment: 2008-05-07 18:40

Well, our trade hit our first profit target and half our position was closed to lock in +100 pips on EUR/JPY. Time to make a few adjustments.

Half position closed at 161.50 to lock in +100 pips. Adjust stop on remaining position to 162.00 to create a risk free trade and lock +50 pips. Trail stop by 50 pips.

We will continue to hold on as the momentum to the downside is rock’n rolling. Stay tuned for updates and adjustments. Good luck!

Trade Update: 2008-05-06 09:22

Our position was triggered at the close of yesterday’s US trading session, and after a brief push higher to 162.80, the Japanese Yen found buyers and we saw EURJPY drop down to its current levels just above 162.00.

We may see the pair stall here for a bit as round numbers tend to draw a lot of attention. We will hold for now and let price action determine if any adjustments are needed. Stay tuned and good luck!

Trade Idea: 2008-05-05 15:03

crosseyed chart

It looks like the tide may have turned in the Euro’s run against the Japanese Yen as the pair continues to trade lower after hitting 165.00 in April. I’d like to ride the trend lower as it appears the pair was unable to break the most recent peak and turned lower. Also, stochastics are in overbought territory and they appear to be turning lower.

We have lots of Eurozone data this week and ECB commentary, but the one to watch is the interest rate decision and statement on Thursday. If the ECB continues keep rates at 4.00% and remain hawkish on inflation, this may pose a problem for a short position on the Euro and we’ll have to make an adjustment then. But for now, we will continue to ride the trend until sentiment changes.

Short EUR/JPY at 162.50, stop at 163.50, pt1 at 161.50, pt2 at 160.00

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

Stay tuned for updates and adjustments. Good luck!

34 comments

  1. PipWolf

    Hey Cyclopip,

    I shorted the EUR/JPY this morning at 162.90 based on my system and I was a little worried I’d jumped the gun until I saw your post. It’s always reassuring when you’re on the same (or at least a similar) page.

    Here’s a question though: I think I’m getting better at deciding entry points, but how did you decide on your pt1 and pt2 values?

    Your input would be greatly appreciated, I’ve already learned a lot from you.

    Reply
  2. PipWolf

    Hey Cyclopip,

    I shorted the EUR/JPY this morning at 162.90 based on my system and I was a little worried I’d jumped the gun until I saw your post. It’s always reassuring when you’re on the same (or at least a similar) page.

    Here’s a question though: I think I’m getting better at deciding entry points, but how did you decide on your pt1 and pt2 values?

    Your input would be greatly appreciated, I’ve already learned a lot from you.

    Reply
  3. cyclopipcyclopip

    Hey Pipwolf…I generally look at possible levels that may attract attention such as psychological levels(round numbers), previously tested support and resistance levels, and maybe tested technical areas like 200 MA and pivot points.

    Reply
  4. PipWolf

    Cool! Thanks for getting back to me. You’ve given me some food for thought. Back to the charts ;)

    Reply
  5. pip1108

    Hey Cyclopip. first of all thanks for all your postings.. they have been great help for beginners like me. For this trade. didn’t your chart show trend reversal regular bullish divergence? and are we forming a potential bullish hidden divergence(trend continuation)? tx a bunch.

    Reply
  6. cyclopipcyclopip

    Hey Pipwolf…I generally look at possible levels that may attract attention such as psychological levels(round numbers), previously tested support and resistance levels, and maybe tested technical areas like 200 MA and pivot points.

    Reply
  7. PipWolf

    Cool! Thanks for getting back to me. You’ve given me some food for thought. Back to the charts ;)

    Reply
  8. pip1108

    Hey Cyclopip. first of all thanks for all your postings.. they have been great help for beginners like me. For this trade. didn’t your chart show trend reversal regular bullish divergence? and are we forming a potential bullish hidden divergence(trend continuation)? tx a bunch.

    Reply
  9. PipWolf

    Hey pip1108,

    I see exactly what you mean. Cyclopip, doesn’t it now look like the bulls are testing 162.75? And winning? What do you think?

    Reply
  10. PipWolf

    Hey pip1108,

    I see exactly what you mean. Cyclopip, doesn’t it now look like the bulls are testing 162.75? And winning? What do you think?

    Reply
  11. demontez

    cyclopip,
    I am still watching this trade as it has hit the first target point. I am not too sure if it is going to make the second target point? How opportunistic are you? If it is going to hit the second target point, i don’t foresee it happening today.I wish i used real money for this trade, i would have been smiling all the way to the bank. thanks for this blog

    Reply
  12. demontez

    cyclopip,
    I am still watching this trade as it has hit the first target point. I am not too sure if it is going to make the second target point? How opportunistic are you? If it is going to hit the second target point, i don’t foresee it happening today.I wish i used real money for this trade, i would have been smiling all the way to the bank. thanks for this blog

    Reply
  13. pakiestra

    With a weak Euro (see what French grey headed boss is goin to mention) and rising risk aversion (S&P 500 is backing off strong resistance level) don’t you think Cyclopip this ride could makes laughin all the way to the bank ? (let’s say 150 in a matter of week/two ?)

    Reply
  14. cyclopipcyclopip

    150??? that’s stretching it, but anything is possible as the markets have been very volatile…I think 160 will stall or reverse the downtrend and the max we may see in a week or two is 152, if it breaks 160…

    Reply
  15. cyclopipcyclopip

    150??? that’s stretching it, but anything is possible as the markets have been very volatile…I think 160 will stall or reverse the downtrend and the max we may see in a week or two is 152, if it breaks 160…

    Reply
  16. cyclopipcyclopip

    150??? that’s stretching it, but anything is possible as the markets have been very volatile…I think 160 will stall or reverse the downtrend and the max we may see in a week or two is 152, if it breaks 160…

    Reply
  17. pakiestra

    With a weak Euro (see what French grey headed boss is goin to mention) and rising risk aversion (S&P 500 is backing off strong resistance level) don’t you think Cyclopip this ride could makes laughin all the way to the bank ? (let’s say 150 in a matter of week/two ?)

    Reply
  18. cyclopipcyclopip

    150??? that’s stretching it, but anything is possible as the markets have been very volatile…I think 160 will stall or reverse the downtrend and the max we may see in a week or two is 152, if it breaks 160…

    Reply
  19. demontez

    thanks cyclopip, you are the man. got 133 pips off the table. ….. good work. Any further retracement on this trade?

    Reply
  20. demontez

    thanks cyclopip, you are the man. got 133 pips off the table. ….. good work. Any further retracement on this trade?

    Reply
  21. demontez

    cyclopip,
    You can bet i am happy with this trade. I enjoyed the fall as much as you did. Thanks for this great trade. Please whenever you come across a likelihood of the retracement back up, give us a shout.Good man!!!

    Reply
  22. demontez

    cyclopip,
    You can bet i am happy with this trade. I enjoyed the fall as much as you did. Thanks for this great trade. Please whenever you come across a likelihood of the retracement back up, give us a shout.Good man!!!

    Reply

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