Wednesday, September 29, 2010

EURJPY—potential sell

There's an energetic rally going on in many pairs right now but a look at the daily EURJPY chart shows it's near resistance thus hinting at a potential short around 114.74. It may only correct but it's not unreasonable to think 1.0986 (50% of the most recent move up) would hold which would make for a nice profit from a short. If it breaks decisively through the 114.74 resistance then there isn't much real resistance before 119.62 so you want a tight stop on any short with probably a stop and reverse.

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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