Pick of the Day: USD/JPY – Close Open Orders

Close Open Orders: 2009-07-01 22:42

Good evening! It looks like I couldn’t get into any positions this week as USDJPY did rise towards 97.00, but not enough as the pair did not trigger. With a possibly wild economic day coming up, I have decided to avoid event risk and close my trades orders out.

Close open orders to short at 97.00. No trade.

So, that’s it for the week. Be safe in the markets as we are going to have one of those rare economic days of ECB interest rate decision, jobless claims, and NFP data all at the same time. Markets are thin ahead of the US holiday weekend, so be ready for fast markets. For those in the US, be safe celebrating during this holiday weekend!

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Trade Idea: 2009-06-29 19:04

PoD Chart

Greetings! Here’s a trade idea that I may take for this holiday shorted week here in the US. It’s a technical setup on USDJPY that marries up with my longer term views on fundamentals. Peep this!

On the four hour chart, we can see USDJPY rallying after finding support at 95.00 once again. It’s now approaching an area of interest in the recent past. The pair has flipped back and forth between support and resistance there, so what will it be an area of resistance again? I think if we do see the pair reach 97.00 in the next couple of days, it will be an opportunity to sell some Greenbacks in the short term. Stochastics are moving higher as well, indicating conditions are becoming more and more over bought in the short term.

Fundamentally, we have plenty of data coming around the globe this week, so volatility may take the pair higher – especially during high tier events. Any weakness in data, especially in employment data this week, could bring back a round of risk aversion selling. Also, there are still concerns about the future strength of the US Dollar and it’s position as the world’s reserve currency. A return to focus on this sentiment could also push the Greenback lower in the short term. Keep an eye out.

So, I’d like to short at the previous resistance area this week. My stop is gonna to be a wide one of over 100 pips (around the daily average true range), and I’d like to target previous support around 95.00. If I am in a trade ahead of Thursday, when we see ECB rate decision and US jobs data, then I will close before hand. Here’s what I’m going to do:

Short USDJPY at 97.00, stop at 98.00, pt1 at 96.00, pt2 at 95.00

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes according.

Stay tuned for updates and adjustments!

  • egg

    the pair is @ 96.736, looks like this trade could be a go soon. cheers 4 the advice.

  • mstory

    my pending orders are set………….ready for the ride

  • egg

    same here, i set my price a touch higher but this looks good.

  • egg

    the pair is @ 96.736, looks like this trade could be a go soon. cheers 4 the advice.

  • mstory

    my pending orders are set………….ready for the ride

  • egg

    same here, i set my price a touch higher but this looks good.

  • engin

    95 is very optimistic actually good luck for this trade because you will need it… if its close the day above 96.70 then you have to think close this position

  • egg

    Im not thinkin it’ll go to 95 by any means. but it looks like where @ a bit of a resistance.

  • engin

    95 is very optimistic actually good luck for this trade because you will need it… if its close the day above 96.70 then you have to think close this position

  • egg

    Im not thinkin it’ll go to 95 by any means. but it looks like where @ a bit of a resistance.

  • egg

    looks like we missed the entry?

  • egg

    looks like we missed the entry?

  • mstory

    this was another good trade idea…..unfortunately my entry was not hit. missed by about 3 pips. removing pending orders now.

  • engin

    dont enter this type short term positions because on the daily chart rsi is on the 50 and stochastic is rising.
    safetiest place for short is 101.30 and your stop should be
    102.50 and if we lucky this position targets are 99 and then 87.00 by the way i have already a short position @101.40 and i am holding this position but i closed the other short position @ 99.50

  • mstory

    this was another good trade idea…..unfortunately my entry was not hit. missed by about 3 pips. removing pending orders now.

  • engin

    dont enter this type short term positions because on the daily chart rsi is on the 50 and stochastic is rising.
    safetiest place for short is 101.30 and your stop should be
    102.50 and if we lucky this position targets are 99 and then 87.00 by the way i have already a short position @101.40 and i am holding this position but i closed the other short position @ 99.50