Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. . To Trade Live with Sophia Join Winners Edge Trading Premium Services.
The Eurjpy currency pair traded in a predictable range for about a week, a condition many interpreted as elusiveness. The resistance can be clearly seen at 113.30, and the support at 111.50. A forceful down move ensued Fundamenta developments in the market yesterday, as the usdjpy fell back to major support levels. The eurjpy range support got breached, but it has since rallied off of its lows. This rally has brought the pair back below the range support, as well as the underside of the trendline at 111.50. Generally, past support can be expected to provide resistance. Please refer to the daily chart below:
It is trading at a critical level and what happens within the next few hours could give us an indication of what our trading opportunities will be. My trading strategy will be to watch the 4-hour timeframe for a close above 111.60 to buy. If this happens then it would have closed back inside of the range. My target for the long is near the top of the trading range at 112.60.
If, however, the 4-hour pulls back, and closes back below 111.50, I will be looking for bearish setups to sell towards 109.50. It is very important to wait for confirmation signals before ‘pulling the trigger’. Current trading conditions could be dangerous, as the major currency pairs are at breakout zones.
Thanks for reading. If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Read my last trade setup on eurusd here: http://www.winnersedgetrading.com/eurusd-bears-sharpening-their-claws/
One other trade I posted is:……
Other useful blogs:
Forex Crunch: Stop Being A Wimp..Don’t Let Fair Get In The Way Of Profits
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
