Friday, October 1, 2010

EURJPY—very near resistance

With a touch of 1.1452 this morning, the pair is getting very near to the potential selling price of 114.74 I've been blogging about this week. You can see on the daily chart below that price is within a rectangle reaching resistance. 115.14 is the upper channel line and there is fib confluence and polarity at 116.63. So if price gets through the 114.74 then it might be worth holding off a bit. Momentum looks good at the moment.

Don't be in a rush to get into trades. Even if some get away there are always more. If this pair continues up then 119.62 will be another selling opportunity. You can also try a long on a clean break of 114.74.

A move down could potentially see 1.0986 (50% of the most recent move up). Before that, though, the pair would find support at 113.41, 112.98, 111.97 and 110.66.

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.

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