Cross-Eyeing EUR/JPY – Close Open Orders

Close Open Orders: 2008-05-15 09:39

It looks like volatility took EUR/JPY as high as about 162.95, just below our entry orders, before sellers jumped in and bought some Yen in early US trading. In light of this price action, I am going to close open orders to short EUR/JPY at 163.00. No trade.

Trade Idea: 2008-05-13 21:56

crosseyed chart

It seems the risk appetites have grown over the past few trading sessions, sending the EUR/JPY higher. If the pair reaches 163.00 once again, will it see the same resistance it saw last week and turn lower one more time?

The risk to this trade idea is that at this point the Euro should be supported by the ECB’s hawkish stance on inflation, but there is concern that the Euro is overvalued and this sentiment may help a short position in the very short term.

On the chart, I highlighted areas where the pair met resistance and failed to break. EUR/JPY is closely approaching that area once again, and after a strong move from just below 159.00, the pair may be running out of steam once again as indicated by stochastics.

Short EUR/JPY at 163.00, stop at 164.00, pt1 at 162.00, pt2 at 160.00

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

Stay tuned and good luck!

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  • SittingBull

    If the price reach 163.00, a trendline, which connects the april 23 and the may 7 peak, will be broken, and in daily timeframe the slow sochastics (14,3) is trending up. There is a resistance at the 163.00 level, but these facts takes the short trade riskier, I think..

  • demontez

    Sittingbull,
    I think i sort off agree with you. Even though the trendline is at 163.00, there is all possibility that this might not hold this time around. I see a break above that trendline to 164.00 level.But Cyclopip is the man, so we just have to watch and learn.

  • comfibold

    I like the look of this trade, but I’ve altered the Open to 163.10, and my target is 161.60. Risking 90 pips to gain 150.

  • cyclopip

    “the man??”…haha… hardly, but thanks for the confidence demontez :)

  • cyclopip

    There is a part of me that feels the markets will see risk aversion once again sparked off by equity weakness. The high energy and commodity prices have to affect companies and consumers at some point. If we start seeing weak earnings for companies, that may spark the risk aversion in global markets and carry trade liquidation in the currencies. Just my humble opinion.

  • demontez

    Comfibold,
    i was going to do the same entry point at 163.07 but something tells me it might not fill my position as 163.00 is a psychological level hence there is a possibility it might change it direction at that psychological level.
    Cyclopip, You are the man with currency pairs blog. I wouldn’t forget the last blog where we made a 150points.Nice one!!!

  • SittingBull

    If the price reach 163.00, a trendline, which connects the april 23 and the may 7 peak, will be broken, and in daily timeframe the slow sochastics (14,3) is trending up. There is a resistance at the 163.00 level, but these facts takes the short trade riskier, I think..

  • demontez

    Sittingbull,
    I think i sort off agree with you. Even though the trendline is at 163.00, there is all possibility that this might not hold this time around. I see a break above that trendline to 164.00 level.But Cyclopip is the man, so we just have to watch and learn.

  • comfibold

    I like the look of this trade, but I’ve altered the Open to 163.10, and my target is 161.60. Risking 90 pips to gain 150.

  • cyclopip

    “the man??”…haha… hardly, but thanks for the confidence demontez :)

  • cyclopip

    There is a part of me that feels the markets will see risk aversion once again sparked off by equity weakness. The high energy and commodity prices have to affect companies and consumers at some point. If we start seeing weak earnings for companies, that may spark the risk aversion in global markets and carry trade liquidation in the currencies. Just my humble opinion.

  • demontez

    Comfibold,
    i was going to do the same entry point at 163.07 but something tells me it might not fill my position as 163.00 is a psychological level hence there is a possibility it might change it direction at that psychological level.
    Cyclopip, You are the man with currency pairs blog. I wouldn’t forget the last blog where we made a 150points.Nice one!!!

  • demontez

    Cyclopip,
    I entered this trade at 162.10 but opted out when you sent this blog to close out position.If i knew i will have still continue on this position going down as i see it extending down more that 160.00 since it did not reach the psychological level of 163.00.
    I lost -30pips on my position.

  • demontez

    Cyclopip,
    I entered this trade at 162.10 but opted out when you sent this blog to close out position.If i knew i will have still continue on this position going down as i see it extending down more that 160.00 since it did not reach the psychological level of 163.00.
    I lost -30pips on my position.