After slow couple of days, things picked today. I’m talking about my trading, not really anything else. Earlier in the week, with the exception of Sunday, the set ups I’ve been waiting for didn’t happen, at least for trades mentioned here. This is fairly typical, nothing unusual. Sometimes I have to wait for days, even weeks, depending on time frame used, before my views line up with what the market is doing. On the plus side, I also didn’t have any losses to speak of. While waiting can be frustrating, it is part of trading, as “non-sexy” as it sounds.

Today finally trades started to roll in. Euro-Pound short set up from New, tougher rules was triggered. Idea was to sell it on a break of 0.8800 support, looking for 50 pips. My own entry was at 0.8798, which was filled nicely. Price indeed fell to 0.8750, just short of my target, by two pips. I exited trade at the close of hourly candle, just after the near miss. Something I do very often if objectives are not reached by a small margin. Here it happened at 0.8755, for 43 pips gain. No complaints.

That post also GBP-JPY, pretty much applying to all Yen pairs. “In a perfect world we would have a good size pull back, and then a decisive move up, setting up two decent trades.” Well, world isn’t perfect, but the pullback happened. First prices made new highs, getting slightly above previous extremes, then the moves stalled. About three hours later I sold the beast. Risks were small, stop fairly tight, so short trade at 144.70 was initiated. Price hit as low as 143.25 and started to reverse again. I got out for 103 pips profit.

I also tried AUD-JPY. Here the initial move was not that large, so I decided to sit on it longer. Couple of hours ago another move down happened and I managed to exit it at 86.35. This made for 89 pips gain.

While it is not really visible on this chart, seems that market sentiment in Yen pairs is changing to bearish. Originally I expected this pull back to be a correction within a bull move. Now however, when lows on hourly charts have been taken out, there might be more left in this down move. CAD-JPY chart from couple of updates ago illustrates it. JPY crosses are approaching next important supports. If breached, they could fall another 100-150 pips, depending on which pair. We’ll see what happens on Friday (it is still Thursday here).

Mike K.