USD/JPY Trade Update on 24th September 2010 (6.22pm)
Trade closed when the price jumped up to reach for the upper boundaries of my 21ema purple channel. From experience, I know that prices after having breached the R3 pivot level, will tend to fall back below that level. As such, I have decided to take profits. I managed to bag 50 pips from this trade. I have decided to take profits and wait for the next signal that will tell me what to do next.
At the current moment, there are some bullish signs on the dollar yen pair. The signals include:
1. Green Parabolic SAR dots appearing
2. Divergence in the MACD histogram
3. Oversold reading in the Stochastic
However, if the price falls below 84.0, it should throw caution to us going long as the bears in the pair would have gained strength.
Singapore Forex Traders’ Blog
USD/JPY Trade on 23rd September 2010 12.40pm Singapore Time
Analysing the chart above, I see some candles closing with a shadow at the bottom that might act as a reversal signal. MACD histogram is also getting shorter with Stochastic in the oversold region. MACD have not crossed yet, as usual as it is a lagging indicator. However, I am going to take a little risk here and enter a long trade. I am aiming for TP at 85.8 and SL at 84. Sometimes I will take my loss earlier or Take profits earlier due to certain signals or observations that I make as the trade goes along.
Singapore Forex Traders Blog