Close Trade: 2008-05-06 10:05
It’s pretty that price action is telling us that the broken resistance did not turn to support. So, our trade idea did not work out and it’s time to close it down and move on.
Close trade at market (104.20). -50 pips/ -0.5% loss
So, it looks like the US Dollar is selling off once again against the majors as US lending companies report bad news. We will just have to wait and see if this sentiment will hold, or if it will be an opportunity to catch the recent USD buying trend. Stay tuned!
Trade Update: 2008-05-05 23:28
Hello Everyone! Just a quick update as USD/JPY has fallen back down to the broken resistance area and triggered our buy orders at 104.70.
From here, I look to continue to hold onto our position and see if buyers jump in. No major news events in the pipeline for the next few trading sessions, so technicals should play out barring any unseen news events. Stay tuned for updates and adjustments. Good luck!
Trade Idea: 2008-05-02 15:14
US Non-Farm Payrolls has come and gone for the month of May, and with job loss reported less than expected at -20k versus -75k expected. I usually don’t hold my breath when it comes to this data as it is usually revised down the road, but I think it has definitely solidified sentiment that the US Dollar turn around is for real… for now.
So, the trend has been up on USD/JPY and it looks like the pair has broken upper resistance on today’s price action. If we see a pull back to that broken resistance area, 104.65, we may see renewed buying interest. I also used a Fibonacci retracement tool on the 103.50 to 105.71 swing, and the 50% retracement level gives us another idea to play a long position.
Long USD/JPY at 104.70, stop at 103.70, pt1 at 105.70, pt2 at 108.00
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
That second is way out there because I look trail our stop if we hit our first profit target.
Stay tuned for updates and adjustments. Good luck and good trading!