USDJPY—capped again

My two shorts profit stopped out yesterday at +10 and +20 pips respectively. I shorted again at 90.72. The pair hasn’t done much since then, reaching a high of 90.95 and then drooping. The resistance is tough—Fib retracements, down trend line, prior highs. However, the pair is languishing and no spectacular moves, up or down, appear in the cards at the moment. Things change, though.

Support:

90.51 (uptrend line from Nov. ’09)
89.14 (January low)
88.43 (bottom of current down channel)

Resistance:

90.95 (yesterday’s high)
91.87/92.30/93.77 (January highs)

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.