Pick of the Day: USD/JPY - Close Open Orders
Close Open Orders: 2008-03-14 14:06
It seems we missed the boat on today's USD/JPY continued sell off as the pair reached a high around 101.15 before sellers took control in the morning US session.
We saw a bit of risk aversion in US equities and carry trades on the Bear Stern bail out news.
So no trade, and with the pair currently trading below 100.00, we will close open orders and start our weekend early! Have a good one!
Trade Idea: 2008-03-13 20:31
Today, we saw the Greenback fall further against the Japanese Yen to levels it hasn't seen in a few years. Will we see the US Dollar slide further or will 100.00 hold?
The trend is definitely to the downside as the pair has fallen over 1000 pips over the last couple of months. Fundamentally, we are not going to see relief in the credit markets anytime soon it seems, even after the Fed's relief plans proposed this week. So, risk aversion is still in play and with speculation the Fed will continue to cut interest rates even further, shorting the US Dollar still looks tempting, especially on minor rallies.
The pair touched 100.00, held, and rallied. Kinda expected given its psychological significance. This may be our opportunity to short at a better price and hopefully ride this pair down if it does breakout lower. If we see USD/JPY rally to the Fib levels drawn on the chart, I am going to short.
Short USD/JPY at 101.20, stop at 102.20, pt1 at 100.20, pt2 at 99.20
Remember to never risk more than 1% of you account on any single trade. Adjust position sizes accordingly.
We have US event risk tomorrow with CPI and consumer sentiment. Please be cautious of volatility during this time.
Stay tuned, good luck and good trading!
