When trading resumed, on Sunday, it looked for a while, good things were going to happen, By that I mean decisive, directional moves, something worth fighting over. After last week, this was a valid assumption. Sadly, it seems that somebody hit a snooze button, or Christmas jitters were officially declared. Most of the moves that happened were short, full of fake breakouts, all kinds of ugly things. But that’s all right, most currency pairs are pulling themselves into short term consolidation, within larger patterns (4H charts). I’ll just have to wait it out or look for set ups on shorter time frame.
In my last post I talked about a long entry into CAD-CHF. Here is the outcome.

Fake breakout. I pulled the plug on it with 74 pips loss. Normally, I would have given it more room, but I’m still in AUD-CHF trade and since CAD was also loosing ground against AUD, I closed this one.
Early on things looked good for JPY crosses. GBP-JPY was fast out of the gates and I managed a trade.

Highlight of the day. Nothing after that, until about 2 hours ago I saw one more breakout which should reach 133.90, but didn’t take it. For tomorrow I’m on a lookout for moves in all JPY crosses. Yen seems to be getting weaker as Toyota expects operating losses for the first time in, well, forever. Everybody is talking about intervention, blah, blah, blah. We’ll see if this new found pessimism holds water.

Mike K.