Pick of the Day: USD/JPY - Cancel Open Orders
Cancel Open Orders: 2007-10-10 19:00
USD/JPY pushed higher and found resistance at 117.50 before dropping lower, then settling in the middle of today's range. No trade was triggered, and I have decided to close open orders ahead of the Bank of Japan interest rate decision.
This risk is to the upside as it is almost a guaranteed hold on the decision, even with the bearish Dollar sentiment through out the markets.
Cancel Open Orders
Stay tuned for a new trade idea!
Trade Idea: 2007-10-10 00:01
We have a possible reversal play with USD/JPY as technicals may be lining up with a bearish Dollar sentiment.
As we can see on the chart, we have a few technical indicators showing that we may see a reversal as the pair bounces off the Bollinger bands (set to two standard deviations). Also, we see a bit of divergence with prices moving up with higher lows, and stochastics trending lower with lower lows.
The risk to our trade is the return to risk as market players purchase riskier assets today, including equities and carry trades. But with short term bearish sentiment on the Dollar, we may be able to take a few quick pips on this one. Here's my trade idea:
Short USD/JPY at 116.60, stop at 117.35, pt1 at 116.30, pt2 at 115.60
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!
btw - I will be hanging out in the chatrooms tomorrow morning (9am EDT - 12pm EDT), so come hang out and let's talk some forex!
