USDJPY Trade Idea
Thursday, January 14, 2010
According to Pick of the Day USDJPY will move down because the rising trend line on daily time frame is breaking. So, the trade idea is to short the pair at 91.00 and take profits at 85.00, but stop at 93.00 if the pair is moving up. This is a long term trade idea, so it will take more than a week to let the trade float.
However, I short USDJPY at 91.35 because my technical analysis indicate a strong sell situation for this pair on daily chart. Unfortunately, USDJPY is moving up moderately. Another short position was traded at 91.91 because this is the reversal point for a bearish movement of USDJPY.
Fundamentally, if USDJPY is moving upward, Japanese Yen is getting weaker and US currency is getting stronger. So, USDJPY will move down because Japanese Yen is getting stronger against US dollar. US dollar is getting weaker due to the increasing debt.
However, I short USDJPY at 91.35 because my technical analysis indicate a strong sell situation for this pair on daily chart. Unfortunately, USDJPY is moving up moderately. Another short position was traded at 91.91 because this is the reversal point for a bearish movement of USDJPY.
Fundamentally, if USDJPY is moving upward, Japanese Yen is getting weaker and US currency is getting stronger. So, USDJPY will move down because Japanese Yen is getting stronger against US dollar. US dollar is getting weaker due to the increasing debt.
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