Trade Closed: 2007-09-13 10:00
The Dollar continued to selloff during the Asian/European trading session against the majors, except the Yen. It looks like Japan economic weakness won out against bearish Dollar sentiment and USD/JPY rallied past our stop to beyond 115.00 for a small loss of -60 pips.
Total: -60 pips
It looks like we will continue to see range bound conditions as many market players wait on the sidelines for the Fed Interest rate decision next week, or even a steady rally as equity markets price in the rate cut. This means a return to risk and a return to the carry trade. Market conditions can change in an instant, so stay tuned!
Trade Update: 2007-09-13 00:20
USD/JPY continues to remain range bound just above 114.00. The pair is still looking overbought in the short term and I feel we may see it drop from here and resume the longer term trend. We will continue to hold our short position.
No new open orders tonight.
Trade Update: 2007-09-12 07:45
Just a quick update. We are still in our trade even after USD/JPY rallied up a bit, but not enough to stop us out. Fortunately, the pair has dropped back below 114.00 and we may continue to see a steady decline as we lack major news reports today.
For now, we will continue to hold on to our position. Stay tuned for updates!
Trade Update: 2007-09-11 11:15
Good luck and stay tuned to potentially quick adjustments as Fed Chairman is set to speak very soon!
Trade Idea: 2007-09-10 23:15
It appears that the pair has found some resistance at the 38% Fibonacci retracement level and consolidating for the time being. We may be see some volatility as the US Trade Balance data comes out tomorrow, but I think it will be short lived as the main focus of the market is whether or not the Fed will cut rates and by how much. I think traders will return to the sidelines very quickly after the report.
I would like to enter the trade on further retracement, between the 50% and 61% Fibonacci retracement levels, but I will also have a trade idea prepared to take quick pips if the pair breaks down lower on weak US data.
if the pair breaks lower…
Stay tuned for updates…Good luck and good trading!