Friday, June 11, 2010

EURJPY—not much movement

It's difficult to get excited about anything involving the Euro and the EURJPY is no exception. There has been little movement and the pair is trading at its lowest levels since 2001. I tried a long position at 110.61 yesterday and it's not doing much. A look at the daily shows shows a well-formed hammer Tuesday at support and it's been nudging up a bit since then. There's also positive divergence on the daily chart. These small ranges will end at some point and a break below the hammer will hint at yet new lows. A break above 111.50 would be bad news to those who are short.

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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