Tuesday, March 16, 2010

EURJPY—found support

EURJPY seems to have found support at the bottom of the upward sloping channel (or bear flag on the daily chart). Its low overnight was 123.24, a few pips above the next support level. My short from 125.03 profit stopped out at 124.15 for + 88 pips. I have not re-entered long—I'll wait for a pullback and see if this rally will have any legs. The other issue is that 124.15/20 is a confluence level of fib calculations so I want to see what it does here.

Resistance is at 125.20, 125.31, 125.88, 126.39 and 126.90, and 127.02. 127.02 (50% of move down from 134.38 to 119.66). Support is at 1.2401, 123.24, 122.34, 121.37 and 120.30.

Here's the three-hour chart. Forgetting about the upward channel for the moment, you can also see the range over the last several weeks from 119.66 to 125.25:

© 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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