Partner Center Find a Broker

Close trade: 2008-02-21 11:47

With a slight rise in Initial Claims and a very weak Philly Fed number, USD/JPY fell to the bottom of the range and triggered our long order at 107.60. It’s the end of the Euro/US overlap and with no more reports set to be released for today, I am going to close the trade for a very small loss as I think negative USD sentiment will play out for the rest of the day.

Close position at market (107.58) for a small loss.

Total: -2 pips
-.08% loss

Trade Idea: 2008-02-21 00:56

PoD Chart

With the lack of any major news in the Asia and Euro trading sessions for USD/JPY, I would like to setup a simple range play for the next few hours.

On the chart, we have a rising wedge where we may possibly run into some support and resistance action. Stochastics are trading near overbought, so I like a short around 108.50. This plays well into the interest rate cut sentiment in the US and slowing economic growth in the US. A return to the bottom or the rising trend line should prove to be a nice opportunity to join in the up trend.

Short USD/JPY at 108.50, stop at 108.85, pt1 at 108.15, pt2 at 107.80

or

Long USD/JPY at 107.60, stop at 107.35, pt1 at 107.85, pt2 at 108.10

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

Good luck and good trading!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.