Trade Closed: 2009-03-31 07:13
My trade stopped out this morning as the Yen continued its sell off. Shortly after my trade idea posted, multiple news reports came out of Japan that scared traders away from the Yen. Not surprising was the weak data that continues to roll out, but the news that the government has yet to complete a stimulus package….geez!! That definitely was enough to scare most away from the Japanese Yen. So, the Yen has fallen out of favor again and needless to say, the potential resistance areas around 130.00 failed to hold as Yen sellers flooded the market.
Trade closed at 131.40
Total: -150 pips/ -1.0% loss
So, the quick changes in sentiment continue with every new news report that comes out. It’s choppy out there kids, so be safe and good luck!
Trade Idea: 2009-03-30 21:04
Good Evening! I may have been a bit early on my short idea last time, but I think today’s retracement higher in EUR/JPY is giving me another opportunity to short again. Ch-ch-ch-check it!
It’s the usual chart setup, except on a shorter time frame than usual. We can see EUR/JPY on a short term downtrend on the one hour chart. We can see a retracement after hitting lows are 126.50, all the way back up to previous support and the 61% Fibonacci retracement area. Actually, as I write this, EUR/JPY just hit highs around 129.95. I’d like to short here for a short term play as I will probably take my trade off of the table ahead of the G-20 meeting this week and the ECB interest rate decisions.
Again, I am in the short anything Euro camp as I feel the recession along with their banking system issues will de-stabilize confidence in the euro further. I look for the ECB to stop the stubbornness and cut rates. We’ll see if they do or don’t this week, but I think traders will price it in ahead of the decision on Thursday. Here’s what I’m going to do:
Short EUR/JPY at market (129.90), stop at 131.40, pt1 at 128.40, pt2 at 126.50
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