About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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Pick of the Day: EUR/JPY

Posted 20:16 19 July 2006 | Comments

Today's pick is on the EUR/JPY. The euro has been in a short term slide, but we've seen gains against many currencies in the past trading day. Currently, EUR/JPY is trending higher as it approaches the 147.50 level. On the daily chart, this was an area of previous resistance, so it looks like an area to short the pair. Also, we see that the R1 pivot line is also lining up with this area, confirming a high probability trade. I would be cautious at around 1:00 am EST as the minutes to the latest Bank of Japan Monetary policy meeting will be released, but it's most likely we won't see anything different than from what was stated during the interest rate hike.

Short EUR/JPY at 147.50, stop at 147.80, pt1 at 147.20, pt2 at 146.95