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Close Open Orders: 2008-05-15 09:39

It looks like volatility took EUR/JPY as high as about 162.95, just below our entry orders, before sellers jumped in and bought some Yen in early US trading. In light of this price action, I am going to close open orders to short EUR/JPY at 163.00. No trade.

Trade Idea: 2008-05-13 21:56

crosseyed chart

It seems the risk appetites have grown over the past few trading sessions, sending the EUR/JPY higher. If the pair reaches 163.00 once again, will it see the same resistance it saw last week and turn lower one more time?

The risk to this trade idea is that at this point the Euro should be supported by the ECB’s hawkish stance on inflation, but there is concern that the Euro is overvalued and this sentiment may help a short position in the very short term.

On the chart, I highlighted areas where the pair met resistance and failed to break. EUR/JPY is closely approaching that area once again, and after a strong move from just below 159.00, the pair may be running out of steam once again as indicated by stochastics.

Short EUR/JPY at 163.00, stop at 164.00, pt1 at 162.00, pt2 at 160.00

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

Stay tuned and good luck!

On a side note
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