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
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.
Stay tuned and good luck!
On a side note: Check out FreshPips.com! This is a new “Forex News” site where users can submit news from around the net and vote on which may be the most helpful in Forex trading. I think it’s a great idea and hopefully we can get it going! So, sign up today!