Daily Forex Signals: GBPCHF Stack Fills Target, On to other Trades

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Written by Administrator | 13 January 2010

Hopefully some of you caught the notion and didn't short the USDJPY break lower yesterday. Those 3% days just get a little ugly if you try to trade them. I stay away if at all possible. Even the EURJPY that broke well below its S3 yesterday, as well as closing below it, retraced a significant portion of the move yesterday. That was a spectacular move. Let's get on with today's news though. The GBPJPY filled a stack I had in place last night. Here is how that worked. This was on an account totaling 13.8k. I closed the position a bit early. I like to be there when the move hits and begins to close, and I also like to sleep, so I elected to take the profit and get some sleep.

Here is what the move looked like. I started entering at 1.6450 and closed the trade just below the gold line. I love this set up because it is so high probability. The big news is though that today’s move will be bringing an easyFXtrade in to this pair tomorrow. I will then be looking for another way lower on this pair. The target should be somewhere around 1.6470 on that short. Much will depend on the close today.

A test of the failed highs from the last several days at 1.6632 and 1.6608 will be important. A significant failure at this level will let me into the trade sooner rather than later. I am also interested in the close because it is around the 1.6600 level. If you have been trading the market for very long you know that price often tests these "00" levels and fails to close beyond them. Another consideration is the news from the Small Island starting tomorrow, or should I say the lack of GBP news. All the big releases come from the EZ and the US. Action will be driven by those two. Look for price close around the shorter line below.

Daily Forex Signals: USDJPY At S3 Watch For Pull Backs

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Written by Administrator | 12 January 2010

This morning’s breakout on the USDJPY to the bottom was a bit astonishing when I opened the chart and first saw it. I wasn't expecting it to go that far. I do have a target for the down side but I was hoping for a little time to prepare for the move. The top that printed last week at 93.75 has found plenty of sellers. If this is the first round of people looking for safety for a coming storm, then I also have a potential target at 88.17. See the China news from over the weekend with some looking for a massive bubble burst.

The dotted line sloping downward at the top of the chart is drawn off the highs of 04/06/09 and 08/07/09 and just happens to be the resistance zone on this latest push higher. I will start looking for selling opportunities on pull backs. A close lower than 91.00 will be a 3% day. That being it would be a close below the S3, and that happens less than 3% of the time.