I’m still long USDJPY from 91.15. The low of its range is 91.60—yesterday the low was 90.73, still inside that range. It bounced from there but only achieved a high of 91.49 early this morning before stumbling. I was planning on taking some profits off the table at 91.80 since there is strong resistance there because of Fibonacci retracement, polarity, and the 139 Exponential Moving Average (EMA). On the rather messy daily chart below, you can see that it might be starting to coil inside a symmetrical triangle. If so, I’d probably close the trade if it achieves 92.50 or so.
Sentiment is very bearish on this pair so a definitive break below 91.50 would be a reason to stop and reverse.
© 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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