GBPJPY—bumping up against 137.38

I had two longs in this pair yesterday. The one on my chart yesterday was from 135.46. I took partial profits in that one at 136.00 for +54 pips. The remainder of it stopped out at +10 pips. I then added another at 136.20 which is still in play. I just took partial profits on that at +92 pips.

The pair hit a high of 137.20 today but it's stalling there. This is just ahead of the significant resistance at 137.38, a price that served as resistance on Monday and on Feb. 25. If it can get through that then it can probably get to 137.91 which is 50% of the move down from Feb. 17.

Support is at 136.67, 136.46, 136.15, 135.52, 134.93, and 134.00. Resistance is at 137.20, 137.38, 137.91, 138.26, 139.59, and 141.68.

Here's the one-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.