Friday, January 15, 2010

GBPJPY—nice drop as well

The yen pairs are all doing poorly and since the yen loves bad news (it gets stronger as things in general get worse) one has to wonder what’s going on. Regardless, I just took partial profits at +204 pips in my short from 149.84.

I wrote yesterday that the pair was coiling in a symmetrical triangle and I was lucky enough to be up when it hit the top. (This is luck, guys, that I was awake but what wasn’t luck was that I knew a triangle was there and didn’t have to think about whether I’d short or not if the pair saw that price level.)

The bottom of that triangle is 147.01 and 147 is also a psychological round number. I may take additional partial profits there. 146.00 is the next support after that. The first resistance is at 147.98 to 148.23.

I think the pair should bounce if it reaches 147 but we’ll see. 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.

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