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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March 2007

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Pick of the Day: USD/JPY

Posted 00:10 22 March 2007 | Comments

Trade Idea: 2007-03-22 00:10

We have a nice little ascending triangle forming on the 4 hour chart for USD/JPY with upward resistance at 118.00. Even with the decline in the Greenback today, I agree with the price action and see this pair rising in the medium term. With the Bank of Japan holding off on interest rate hikes, carry trade interest should continue to resume.

As we take a look at the chart, we want to jump in long at a good price, so we will wait until the pair drops back down to the rising trendline before entering a position. We will target 118.00 since it is an area of previous resistance.

Long half normal position size of USD/JPY at 117.00, stop at 116.60, pt 118.00

Long half normal position size of USD/JPY at 116.75, stop at 116.45, pt at 117.25

Please remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!