USDJPY—daily This pair continues to show some interesting but messy price behavior. On the daily chart, a flag pattern is forming, possible consolidation on the way to higher prices. If this is a flag, the target is 92.13, which seems somewhat unlikely although certainly not impossible. However, before this ever happened, bulls need to carry the price above 84.20/77, 85.16 and the recent spike high of 85.52. Note that the price has moved back inside the triangle (the dotted lines) that contained it for the most part over the last several months. The low so far has been 82.65, very close to the support I blogged about last week of 82.56. A .382 retracement of the recent move up from the 76.59 low would be 82.11; 50% is 81.06. Here's the daily chart:
© Dianne Fecteau, 2011. 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.