Pick of the Day: EUR/JPY – Trade Closed

Update – 01/03/07: 09:50 am EST

Lot 1: +29 pips
Lot 2: +00 pips
Total: +29 pips

The second half of our trade stopped out at breakeven, so we gained +29 pips on the first half from our Euro session trade. We have ISM manufacturing coming out in the next ten minutes, and with the dollar rebounding during the Euro trading session on speculation of a stronger ISM number, I’m looking to go long to stay with the breakout and current short term dollar bullishness. I will wait for the ISM numbers to released and see if there are any viable short term setups.

Update – 01/03/07: 07:52 am EST

We’re about to head into the US trading session and our long position looks to be up approximately +29 pips. I will close out half of my trade at 157.99 to lock in some profits as we head into a news filled US trading session, and move the stop on the second half to breakeven….

The greenback ralled last night as the markets are expecting a ISM Manufacturing Survey of 50 versus the previous number of 49.5. This report is highly anticipated, so expect the markets to move with a surprise number in either direction. The ISM numbers will be out at 10:00 am EST, so I will be looking for a trade setup right before then.

Also, the FOMC minutes will be released at 2:00 pm EST, and the market will be watching out for hawkish or dovish rhetoric from the Fed. This can be a market mover also, so we will keep an eye out for trade opportunities at that time as well.

Stay tuned!!

Trade Idea – 01/03/07: 12:00 am EST

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Welcome to 2007!!!! I hope everyone rang in the new year with a bang! Well, it’s time to put down the party favors and get back into the swing of things. For tonight’s trade, we are looking for a simple breakout trade in EUR/JPY…

Right now, the Euro has been on a tear against the Yen. With speculation that the ECB will continue to raise rates, while the Bank of Japan remains wishy-washy on when they will raise, this pair may continue it’s run upwards. We are currently looking at consolidation pattern, and we may see a breakout during the Euro trading session. Here’s a trade idea:

Long EUR/JPY at market(currently 157.72), stop at 157.40, pt1 at 158.10, pt2 at 158.50

Remember to never risk more that 1% of your account on any single trade!!!

Good luck, good trading, and please stay tuned for some US Session Trading later as the ADP and ISM reports come out later today!