I’ve been short EURJPY forever it seems (since Tuesday, the 8th, at 133.03 which gives you some sense of how time can be distorted when trading). However, for me to stay in a pair is unusual unless the pair is strongly trending. It never reached the bottom of the range and I should have probably closed it out but I’ve taken partial profits several times at +43, +180, +264, and +360, so I’m not too concerned about the small position left which is profit stopped at +120 pips.
It’s hovering in the middle third of its range. This range is from 126/127 on the bottom (with one dip down to 124.38) to 138/139. On the hourly chart, it looks as though it’s rebounding and is approaching the 50% retracement of its recent dip. It’s going to have to push through current resistance at 131.50/80. 132.50 and 133.23 are the next resistance levels. Support is at 129, then 127. I believe there will be another opportunity for a short at some point, although perhaps not today. Here’s the daily chart:
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.