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Trade Closed: 2008-01-22 08:25

Our trade was closed during the morning European trading session as EUR/JPY took a breather from selling off and the pair hit our adjusted stop on a retracement.

1st half: +119 pips
2nd half: +354 pips
Total: +473 pips/ +1.58%

There are still fears of the US slowing the rest of the world down, so I would look for the Yen to continue to rise on global risk aversion for now. We will to watch interest rates decisions from the central banks this week and see how risk will play out in the short term. Stay tuned!
Stop Adjustment: 2008-01-21 13:00

EUR/JPY dropped a bit more during today’s trading session on more risk aversion and Euro selling. With the pair now hitting and finding support at 153.00, we will adjust our stop to lock in more profits.

Adjust stop from 156.80 to 154.50.

Trading will probably be light for the rest of the day as the European session trading has closed and the US markets are on holiday. For those who like to add to winning positions, add small positions a fraction of your original position size can enhance your profits from here. Good luck and stay tuned for more updates!

Trade Adjustment: 2008-01-20 22:00

Welcome to back and I hope everyone had a great weekend! EUR/JPY is now currently trading below 155.00, and so I’d like to make a quick adjustment to lock in a few more pips on our remaining position.

Adjust stop on remaining position to 156.80. If pair reaches 155.00, re-adjust stop to 156.00.

So, we are leaving the profit target open and just adjusting our stop as the pair continues to move lower. Stay tuned for more updates and adjustments. Good luck!

Trade Update: 2008-01-17 10:57

Just a quick update as it looks like EUR/JPY appears to be in a consolidation phase as the pair has been ranging between 158.50 and 156.50.

The pair has dropped about 500 pips since last week, so the markets are just taking a breather for now. Next week is packed with economic events, and for the EUR/JPY, the Japanese interest rate statement will be the most significant at the beginning of the week.

Technically, the pair appears oversold on the Daily and 4hr charts. Therefore, I may take the rest of my position off of the table, or for those of you who like to scale may want to take a bit more off of the table and lock in further profits. Stay tuned for further trade adjustments. Good luck!

Trade Adjustment: 2008-01-16 11:00

It’s been a wild ride this morning as we saw EUR/JPY move 200 pips up and then 200 pips down on Euro selling during the Euro/US trading overlap. With the pair back down below 157.00, we will take some profits off of the table as it seems 156.50 is filled with many buyers.

Close half position at market. (156.85), Adjust stop to break even (158.04) to create a risk free trade. Our final profit target will be at 155.00.

Good luck and stay tuned!

Trade Adjustment: 2008-01-16 08:34

Our initial assessment of current risk proved to be right as we saw EUR/JPY drop almost 150 pips from our entry point and we missed our first profit target by about 5 to 10 pips. The pair retraced from that point, most likely on profit taking, and now it is currently dropping once again.

I would like to reduce our risk by making a quick adjustment to our stop.

Adjust stop from 159.54 to 158.50.

For those who like to scale in and out of positions, the current trading levels around 157.20 would be good to close out 10% to 20% of your position to lock about 75 pips on a portion of your trade. Stay tuned for more updates and adjustments. Good luck!

Trade Idea: 2008-01-15 17:58

crosseyed chart

It looks like a reversion from risk as we are seeing equities and higher risk plays sell off across the globe. Of course, this includes unwinding of the “carry trade” in the currency markets. Will the Japanese Yen continue to benefit?

Today, I put up a daily chart on the EUR/JPY and we can simply see a candle close below the low made back in November at 158.70. I think it will go lower over the course of the next few weeks as the Yen strengthens on speculation we may see interest rate cuts in the US, Eurozone, and the UK.

I look to short EUR/JPY, with a wide stop of about 150 pips, and target the major support area around 155.16. For those of you who like to scale into your positions, 158.00 – 159.00 would be a great area to do so. Here’s a trade idea:

Short EUR/JPY at market (158.04), stop at 159.54, pt1 at 156.50, pt2 at 155.20

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Good luck!

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