Pick of the Day: EUR/JPY – Close Open Orders

Close Open Orders: 2007-05-30 16:00

As expected, EUR/JPY corrected a bit further. Unfortunately for our “Pick”, it was unable to break support at 163.00 before rallying up to its current level around 163.40. Our trade was never triggered… doh! (I’m still not sure what’s worse: missing a trade or losing on a trade… hehe)

So, it’s the end of the trading day and I have decided to close all open orders to go long EUR/JPY. One more trade for May tonight…stay tuned kiddos!

Trade Idea: 2007-05-30 00:05

Pick of the Day

We have a potentially nice setup in EUR/JPY this evening. We saw the Yen rally today after China increased the tax on securities transactions. This lead to a sell off in equities globally and a little bit of risk aversion as traders unwound carry trade positions. Now the question is whether or not if this is a hiccup or a real change in market pyschology? Are we about to see the bull run in equities end?

I think is only a temporary thing and that we will let it play out a little bit further before jumping into a carry trade position.

Fundamentally, recent Japanese data has been weak this week with Retail Sales and Industrial Production disappointing. This should support a long sentiment in EUR/JPY.

So, we will wait until the pair trades into the 250 WMA on the chart before jumping in long.

Long EUR/JPY at 162.90, stop at 162.55, pt1 at 163.25, pt2 at 163.50

Please remember to never risk more than 1% of your account on any single trade. Please adjust your positiion sizes accordingly!

Good luck and good trading!