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| USDJPY 1HR chart - Dates on chart are March 9, 2011 - March 28, 2011. |
ANALYSIS:
The USDJPY appears to be over extending itself... in my humble opinion, it is due for a retracement. It is nearing both the 100% expansion of the March 16 spike. This resistance line also coincides with the 261.8% expansion of last Friday's major move. If the pair continues inflating towards resistance in this manner during today's session, a strong retracement could ensue.
NOTE: The pair is also fast approaching the psychological resistance level of 82.00 - more reason for bullish pressure at this level. Our entry is just below the 82.00 line, stop should be 30-35 pips with profit target 50-65 pips away. Enter at your own risk, and choose your targets suiting your own risk tolerance.
EDIT: Move SL to open price after only 20-25 pips. Minimize risk as soon as possible, if and when price moves us into this trade.
Agree or Disagree?
TRADING OPTION:
PENDING ORDER
Sell Limit: 81.95
Stop loss: 82.30
Take profit: 81.35
EDIT: Stop loss to break even at 81.73. Partial profits can be taken somewhere once or twice between 30 pips - 60 pips in profit.
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