Monday, January 10, 2011

EURJPY—trying to base at support

EURJPY failed to form a base in the low 108 area and dropped further to a low of 106.95 on Friday, near a somewhat obscure fibo and of course a round number (which the yen pairs seem to favor). In trying to base here, it has reached a spike high of 107.68 overnight. However it has since fallen back and we're going to have to see what happens during the NorAm session.

A support zone exists down to 106.24 (price lows, polarity, fib confluence). Below that opens up the possibility of a move down to 103.81. There's a cluster of resistance between 108.00 and 109.00 (price, fibo, confluence). Above that is last week's high of of 110.24.

See last week's blog posts for charts.

© 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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