Pick of the Day: USD/JPY
To close out the week, tonight's chart couldn't get any simpler. No Fibonacci, no mathematical indicators - just short at the resistance line!
As we can see, a down sloping trendline is all we have on the chart. The Greenback has been trading sideways and now we're seeing lower highs as it appears the US Dollar is losing steam on recent weak Jobs and Industrial production data. Now we just got news of a surprisingly strong than expected Japanese GDP data. Couple all of this with the potential to see weak housing data and consumer sentiment data tomorrow, and USD/JPY may have a hard time breaking higher if it touches the resistance trendline drawn on the chart.
So, we'll just keep it simple and short at the line, with a wide stop of 100 pips, so adjust position sizes accordingly to stay within comfortable risk tolerance levels.
Short USD/JPY at 105.30, stop at 106.30, pt1 at 104.30, pt2 103.00
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly to stay within comfortable risk parameters.
Stay tuned for updates, good luck and good trading!
On a side note: Check out FreshPips.com! This is a new "Forex News" site where users can submit news from around the net and vote on which may be the most helpful in Forex trading. I think it's a great idea and hopefully we can get it going! So, sign up today!
