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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Pick of the Day: USD/JPY

Posted 21:39 24 July 2006 | Comments

For today's pick we are focusing on the USD/JPY pair. On the one hour chart it looks like the pair is in a corrective three wave pattern, with it possibly continuing further to the downside. Now, we do have US economic reports coming out in the form of Consumer confidence and existing home sales at 10:00 am EST. Both reports are forecasted to be down from the previous month, confirming a slowdown in the US economy. So, we may see US dollar weakness within the next trading day or so, and here's a trade to take advantage of that:

Short USD/JPY at 116.50, stop at 116.75, pt1 at 116.30, pt2 at 116.00