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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August 2006

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Pick of the Day: EUR/JPY

Posted 19:05 14 August 2006 | Comments

We have a great looking chart on EUR/JPY. The euro has been making new all time highs against the yen, but when’s it going to end? Again, who knows? The Eurozone economy has been getting better and better, and the ECB has inflation concerns on their mind. We don’t have any news reports coming out of the Eurozone or Japan, so we’re looking to jump in the trend and hopefully ride it on up. My only concern is on the daily chart we are seeing the MACD creep lower and lower as EUR/JPY prices rise. Bearish divergence? We’ll just have to keep an eye out and manage our stops well. Here’s a couple of long ideas:

Long EUR/JPY at 148.75, stop at 148.55, pt1 at 148.95, pt2 at 149.25

Long EUR/JPY at 147.70, stop at 147.50, pt1 at 147.90, pt2 at 148.25

Good luck and good trading!