All the yen crosses are weak this morning with a short I took in GBPJPY at 149.84 down 100 pips. I just took partial profits at +95 pips.
This pair is coiling in a symmetrical triangle on the three-hour chart and I just happened to be awake, although dopey, when it touched the top of the triangle this morning. Dopey is OK as long as you trade the chart in front of you as it turns out. Upper shadows on the candles and a lack of oomph in the RSI were signals that helped make the decision as well.
It’s currently in a general price support zone and the candle that just closed with it’s long upper and lower shadows indicates indecision. Additional support is at 148.57, 148.28, 148.07, 147.28 and 147.00. Obviously, if it starts to climb and closes above the triangle, that hints at a long position.
Here’s the three-hour chart.
© Dianne Fecteau, 2010. 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.