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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August 2006

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Trade Review: EUR/JPY

Posted 19:41 01 August 2006 | Comments

Not much going on tomorrow in the way of economic reports except for the E-12 monthly PPI report. The Producer Price Index measures the inflation felt by manufacturers. So, we may see some movement after the report which will be released 5:00 am EST. Consensus is expecting a lower number of 0.2% versus 0.3% in the month prior.

Based on the price movement on the hourly chart, I’m looking for a further drop in the euro against the yen. It seems to have found resistance at the 147.00 price level and the 50% fib retracement level before turning back south. I am looking to target the previous low and 145.50 if we see enough movement in the pair.

Short EUR/JPY at 146.10, stop at 146.40, pt1 at 145.90, pt2 at 145.75

Please be cautious for whipsaws around the news report. Good luck and good trading!