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Trade Closed: 2007-02-08 00:00

Our trade was stopped out as the Euro gained strength across all of the majors throughout the day, including the Yen. We were short a full position at a blended price of 156.65 and stopped out at 156.90. It’s a good thing we kept it tight because EUR/JPY took off as high as 157.30. So, a minor setback, but it’s early in the month with so much more trading opportunities to go.

1st half: -25 pips
2nd half: -25 pips
Total: -50 pips

Trade Update: 2007-02-07 09:00

Both of our short orders in EUR/JPY trigger creating a full position at a blended price of 156.65. There were reports this morning of Japanese ministry officials saying that currencies would not be a major topic at this weekend’s G-7 meeting. This has created a weaker Yen sentiment, so we will look to adjust our exit orders.

Adjust stop on full position to 156.90. pt1 at 156.50, pt2 at 156.30

Good luck and good trading!

Trade Idea: 2007-02-07 02:00

crosseyed chart

The Yen has made significant gains as traders are concerned of carry trade unwinding and the upcoming G-7 conference. We’re seeing a retracement right now from that strong move, but I think we will continue to see the Yen strengthen all the way until the G-7 meeting.

Technically, I used the Fibonacci retracement tool to find a good entry point. The 50% and 61% retracement levels are pretty strong resistance areas. Couple this with the fact that the 50% retracement level is close to the 200 SMA on the 4 hour chart, this area looks to be great for the pair to find resistance and resume the Yen rally. Here’s how we’re going to play this pair tonight:

Short half normal position size EUR/JPY at 156.50, stop at 157.00, pt at 156.00

Short half a normal position size EUR/JPY at 156.80, stop at 157.10, pt at 156.30

Remember to never risk more than 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

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