GBPJPY—Weekly

The weekly chart of the Guppy shows the 13EMA has capped it three times in the last six weeks. Looking back prior to that however, one can see that when the pair exceeded the EMA it went to the top of the corrective rectangle before dropping back. So one could short as I did this morning at
135.48 or wait until the pair reaches 141.50/142. In either case, the stop can be tight. Mine's already at breakeven but I may add another position depending on price action in the next hour or so.

At 142 there is additional resistance from the daily chart with a speed line and a downtrend line from Aug. '09. The momentum, as represented by RSI on the weekly chart, isn't showing a lot of oomph. That will have to change if there's going to be a correction back to the 163 area. Regardless, that's tomorrow's problem.

Support is at 133.54, 132.69, 130.42, 129.89, 129.08, 127.66 and 126.73. Then there's the bottom of the weekly channel at 122.90. Resistance is at 136.03, 136.48, 137.67, 137.99, 140.34, 141.50, and 142.00. If it breaks above that then I'll put out new resistance levels.

Here's the weekly chart. You can't see my trade from 135.48 because I use a different charting package for longer term charting:










© 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.