Monday, September 18, 2006

In with the Yen, out with the Euro

Last Friday I talked about all the pairs I was close to trading. Well today, I finally entered one of my trades. I've been yapping about the USD/JPY and how it had recently made a 20 day high which was expectedly followed by a retracement. Well after 4 days since that 20 high, I am finally in trade after the USD/JPY broke through this level. Apparently during the G7 meeting, no one mentioned the need to raise the value of Asian currencies. My entry was at 118.20 which was 6 pips higher than the 20 day high at 118.14. I've placed my stop loss at the low of the 2 day swing at 117.30. I know today's low was lower but I'm guessing that was just noise so I'm not going to count it as the most recent swing low. My initial target is at 120.00. I will continue to monitor this trade and how the market moves to decide whether or not that target needs to change. For now, this trade looks good to me and I'm comfortable being in right now. (See chart below)

I am still looking to short the GBP/USD but I don't see any entries yet. All I'm waiting for is to see some convincing momentum that this pair will head down and I will catch and ride the wave. If this doesn't happen that's ok too. Right now I just have a short bias on this pair so that is what I'm looking for.

My AUD/CAD trade is still going. This pair is still staying in a range and a breakout hasn't happened yet. I really don't care which way this pair goes. I just want to see it move when it does finally break out. Hopefully I'll see some action soon on this one.

And what a surprise....the EUR/USD was umm...yup...rangebound again! As a result, there were no Alba trades and it was another manic Monday for the pair. At this point, I have no directional bias on this pair and am being very cautious right now because of that. Even though this is the pair I like trading the most, I have to realize that right now I can't find any reasons to trade it and shouldn't force anything. I'll continue to watch it of course, but I don't feel strongly about any trades in this pair as of this moment. (See chart below)

I'm still excited about this week, especially since I'm actually in a trade now, and I'll keep posting anything I see that catches my eye. Hope you all have a great trading week!



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