Good afternoon! My trade was triggered during the morning Asia trading session as EUR/JPY made a low around 131.72 and hitting my orders at 131.80.
The pair rallied from there into the European trading session, making a high around 133.50, and hitting my first profit target along the way.
Half of my position was closed for a profit and I adjusted my stop on my remaining position to breakeven to create a risk-free trade. Unfortunately, that was it for the rally as the Yen gained strength across the board and brought EUR/JPY back to its current levels around 131.30 and stopping my trade out.
1st Half: +100 pips
2nd Half: +00 pips
Total: +0.5% gain
So, a nice trade to start out the week. Let’s see if I can get another one in….stay tuned!
Trade Idea: 2009-05-11 17:07
Good afternoon Forex peeps! After touching 130.00 and rallying higher on continued rising risk tolerance last week, EUR/JPY started this week on a pullback of profit-taking. This may be a chance to jump in the trend high on a nice and easy technical setup. Check it!
Usually, I have the 4-hour chart up, but I zoomed down to the 1-hour timeframe to give a clearer picture of what’s going on. The pair has been on a fast rally since hitting 125.00 a few weeks ago and testing 130.00 last week. We can clearly see a retracement down into the Fibonacci retracement area drawn on the chart. Stochastics are indicating oversold conditions on the 1-hour chart, and are indicating near oversold conditions on the 4-hour chart. I’d like to wait to see if the pair hits the 61% Fibonacci level before jumping back in long.
Inflation is forecasted to be much weaker than the targeted 2.0% and could spark further stimulus actions from the ECB. We will also see Q1 GDP on Friday. No major news expected on the calendar for Japan, so look for global risk tolerance to continue to influence price action in the Japanese Yen.
So, my trade idea is based mostly on technicals as the trend has been higher on this pair. Also, sentiment has been focused on that the economy may be getting “less worse.” Regardless of how bad it is out there, as long as it is no longer falling off a cliff, investors seem to want to buy in on that alone.
I will go long at the 61% Fibonacci area and target previous highs. Here’s what I am going to do:
Long EUR/JPY at 131.80, stop at 130.80, pt1 at 132.80, pt2 at 135.00
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
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