Wednesday, February 3, 2010

USDJPY—dull and duller

This pair is acting as nervous as a long-tailed cat in a room full of rocking chairs and it makes for some very dull market action. If that is an inverted head and shoulders pattern forming on the weekly and daily charts, the pair is in no rush to complete it. This could be an Elliott Wave flat correction, taking its time to develop. With the bullish divergence and the potential H&S, I could make a case for going long but I’m still short from 90.95 with a profit stop just above breakeven. There’s still strong resistance overhead.

Here’s the daily 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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