Tonight I feel that going long from around the 131.00 level is the safest bet, so I will be placing a buy GBP/JPY order @ 131.10 with my TP 131.69 and SL 130.60. The reasons for going long are:
1. 131.20 - 131.00 has what looks to be like a major trendline support on the 4 hour chart.
2. The RSI is looking oversold on the 15 min - 4 hour charts and is showing an inverted H&S pattern on the 30 minute chart.
3. Decent resistance is at 131.70 and may have to be tested before another leg down so I am guessing that this test may come in the next few hours.
4. Price action is suggesting that the bears are losing momentum in the short term and a short squeeze is in the works. If 131.00 does not hold the next major support is around 130.30 which seems unreachable from where we sit, but anything is possible in forex so I guess we'll have to wait and see.
Thursday, September 30, 2010
Wednesday, September 29, 2010
FOREX DOJO TRADE # 18 (actually a continuation of # 17)
Tonight I will not place any new trades unless I take a profit or loss in the next couple hours from yesterday's trade. We came pretty close to being stopped out but the 132.00 handle is proving to be tough to break. I see that the charts are looking pretty constructive and next resistance lies in the 132.60-132.80 zone so I'l keep my trade open and will check in every hour or so until my bedtime.
Tuesday, September 28, 2010
FOREX DOJO TRADE # 17
Tonight I plan to buy GBP/JPY @ 132.30 with a TP 132.80 and SL 131.80. My justification for making this trade is:
1. There has been a nice bounce from the 132.00 zone which indicates the that support in the area is strong.
2. The 100 EMA on the 4 hour chart resides in that area as well as the 38.2 Fib level which equates to multiple forms of support.
3. The RSI on the 1 hour chart is is in oversold territory while a new low has not been made below 131.95 indicating that the bulls are running out of steam.
4. The next support after 132.00 is at 131.50 and seems unattainable from these levels unless there is a clean break of 131.90 (which is possible but I'm hoping won't happen before a test of 132.80)
1. There has been a nice bounce from the 132.00 zone which indicates the that support in the area is strong.
2. The 100 EMA on the 4 hour chart resides in that area as well as the 38.2 Fib level which equates to multiple forms of support.
3. The RSI on the 1 hour chart is is in oversold territory while a new low has not been made below 131.95 indicating that the bulls are running out of steam.
4. The next support after 132.00 is at 131.50 and seems unattainable from these levels unless there is a clean break of 131.90 (which is possible but I'm hoping won't happen before a test of 132.80)
Monday, September 27, 2010
FOREX DOJO TRADE # 16
It looks like the price did end up getting stuck in 50 pip range for the last 24 hours and I'm planning to continue trading it tonight. My order for tonight wil be a short GBP/JPY @ 133.49 with a TP 133.00 and SL 134.01. My trade is based on the following factors.
1. The price has bounced off the 133.50-133.70 area twice since yesterday and I am betting against a break.
2. The range has been 133.60- 132.90 and it would be safer to continue trading the edges of range than to anticipate a break.
3. The trading terrain looks rough tonight with the RSI being choppy, short candles and the EMA flattening out in the 30 minute and shorter timeframes. From here a forecast is very difficult so it may also be wise to put a 25 pip trail or avoid trading until the price breaks above 133.60 or below 132.90. To each his own.
1. The price has bounced off the 133.50-133.70 area twice since yesterday and I am betting against a break.
2. The range has been 133.60- 132.90 and it would be safer to continue trading the edges of range than to anticipate a break.
3. The trading terrain looks rough tonight with the RSI being choppy, short candles and the EMA flattening out in the 30 minute and shorter timeframes. From here a forecast is very difficult so it may also be wise to put a 25 pip trail or avoid trading until the price breaks above 133.60 or below 132.90. To each his own.
Sunday, September 26, 2010
ADD TRAILING STOP TO TRADE# 15
Just incase 133.00 holds solid I prefer to put a 25 pips trail. It is possible we may get caught in a tight 50 pip range so better be safe and break even than to have it break up and trigger a stop.
FOREX DOJO TRADE # 15
After looking at the charts tonight I've come to the conclusion that the GBP/JPY is slightly overbought. Based on my analysis I plan on placing my sell order @ 133.44 with a TP 132. 95 and SL 133.95. I have based my strategy on the following factors:
1. Based on the 1 hour chart it seems that the 133.50-133.75 level is holding up quite well. A trend line from 133.75 level seems to be coming in at 133.50 from where I sit and looks like a good spot set a short if it comes into play.
2 On the shorter timeframes it seems that new highs are not being above 133.75 indicating that the bulls are running out of momentum and may begin to bail out if 133.80 isn't breached in the next little while.
1. Based on the 1 hour chart it seems that the 133.50-133.75 level is holding up quite well. A trend line from 133.75 level seems to be coming in at 133.50 from where I sit and looks like a good spot set a short if it comes into play.
2 On the shorter timeframes it seems that new highs are not being above 133.75 indicating that the bulls are running out of momentum and may begin to bail out if 133.80 isn't breached in the next little while.
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