Thursday, January 6, 2011

EURJPY—down to 108.11

EURJPY dropped to a low of 108.11 over the last two hours but it needs to go lower than this.

Looking again at the hourly chart, one can see it forming a triangle or possibly an asymmetrical head and shoulders pattern (which would not be confirmed until it broke below 107.80). It also may be in a zigzag flat correction with the C leg yet to begin. If a C leg began after the 108.11 low, price could reach to 110.15 to a high of 112.78 (C = 1.618 A).

Here's the hourly 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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