EURJPY—struggling

EURJPY has been struggling because of the Euro's troubles and of course the yen tends to gain on bad news such as yesterday's downgrade of Greek debt so there's a good chance it could sink lower even though it has regained a trend line.

I shorted at 1.2459 as the pair struggled with resistance there which exists on up to 125.25. If it could break above there then 126.31 is possible. I've taken partial profits already at +65 pips although I'm thinking it could drop down to support at 124.00, 123.00, and 122.00. To do this it has to break below the trend line it is currently sitting on. Just as with other pairs, there is positive divergence on the chart.

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.