GBPJPY—soaring

My long from 136.40 stopped just above breakeven so I established another long at 136.83 since nothing had changed. I was probably a little too cautious, moving my stop too quickly to breakeven but this happens. In any case, the pair is up nicely, riding the coattails of the pound this morning. I've moved my stop to 137.45 and will just see where it goes. Should the pair pull back to 138.18 (the breakout point from the range), adding to my long is definitely something I'll look at. As I wrote yesterday, 138.09/26 was tough resistance so if it can clear it again, the outlook is good for this pair to climb higher even though it's in an overall downtrend.

Resistance is at 139.00, 140.00, and 141.40, 142.10, and 143.65. Support is at 138.09/18, 136.00, 135.52/45, 135.19, 134.93, 134.00, and 133.92.

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.