2009 April | Forex Swing Trading

Archive for April, 2009

Long EUR/JPY

Monday, April 27th, 2009

I'm still bearish on the JPY, based on the recent daily charts of the various JPY crosses. Tonight I've entered a long position in EUR/JPY. Recent price action on the daily chart shows the pair bouncing off of the rising trendline on the daily chart at a level that has served as an area of support and resistance in the past.

Take a look at the daily chart below. The red circles indicate some times in the past when this price level has been tested, both from above and from below. The past couple of days seem to indicate that this area will hold as support and the pair will continue higher.

So I'm long from 128.088. We'll find out this week if I'm right.

Long Entry: 128.088
Initial Stoploss: 125.650

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Dipping back in to GBP/JPY

Saturday, April 25th, 2009

I'm seeing another possible long opportunity in GBP/JPY. My last long was closed a couple of days ago as the pair dipped and took out my stoploss. I was able to bank 566.8 pips on the first half of the position and 424.7 pips on the second half. (By the way, I still have my EUR/AUD short open. Unfortunately, it has not fared as well - I may be exiting that position soon.)

Tonight, I see that the pair has pulled back to the rising trendline on the daily chart. This could be a good low-risk opportunity if the trendline holds. Here's the daily…

If we zoom into the 3 Hour chart, we see the action around the trendline a little more clearly. The pair has tested the rising trendline multiple times in the recent past, and each time we've seen a pin bar form at the trendline with a nice sharp reaction. Today we've got another pin bar that has formed, so I'm looking for a good bounce. Here's the 3 Hour chart…

I've place a stop just above the recent price action, so if the pair continues to move up and away from the rising trendline, I'll get on board.

Long Entry: 143.1
Initial Stoploss: 141.0

Edit 4/22/09 9:15 PM: Well, I got stopped out of my GBP/JPY position today as the pair broke the trendline. I was wrong on this one - on to the next trade.