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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July 2006

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Pick of the Day: USD/JPY

Posted 21:13 20 July 2006 | Comments

It's been a rough week for my picks, but hopefully we can end the week on a good note. There are no major economic releases out of Japan or the US tomorrow, so I found a low risk setup for a down turn in the USD/JPY. On the hourly chart we see a lower low, and a reversal at the 38% Fib retracement level. So we'll look to go short when the pair makes a move below the previous low. Hopefully, we can catch a continued move to the downside spawned by the markets reaction to Big Ben's comments. Here's a trade idea:

Short USD/JPY at 116.35, stop at 116.60, pt1 at 116.05, pt2 at 115.85