Trade Idea: 2007-02-15 11:13
It looks like the pair was able to break through the 120.00 level as the Greenback weakened against the majors this morning. It looks like USD/JPY found support near 119.50, so from this point we will look for a retracement then go short. Here’s a trade idea:
Short half position USD/JPY at 119.75, stop at 120.20, pt at 119.40
Remember to never risk more than 1% of your account on any single trade, so please adjust your position sizes accordingly.
Good luck and good trading!
Sorry for the late post. Anyways, tonight’s pick is on USD/JPY. We saw Bernanke’s testimony to the Senate Banking Committee today, and the focus of his comments were that the housing market continues to be a drag on growth and that the Fed is taking a more moderate stance on inflation. This sent the Greenback tumbling.
Earlier this evening we saw growth in Japan’s quarterly GDP, which sent USD/JPY tumbling. All the way to 120.00 – a psychologically significant price level.
We will be watching this pair for now, and with a candle close, on the 4hr chart, below 120.00 we will look to short. If it breaks, this sucker is going down, baby! For now we will continue to watch this pair and I’ll send a trade idea out as soon as one arises. Stay tuned!