17 December 2012

USD/JPY : Profit Stopped @ 83.83

  • Trailing stop on long at 81.81 and 83.00 taken out at 83.83 earlier this evening.
  • Price action on daily basis has reversal feel to it. Not surprising really, given every mother son and dog already long. Shinzo Abe/LDP victory a good excuse for buying rumour selling fact trade.
  • Waiting to go long again hopefully when profit taking runs its course. Neckline support is at 83.05 this week so will try to buy the approach, if indeed we do get down that far. At 83.86 now.
  • Daily chart shows congestion support between 82.00 and 82.50 but realistically, I would no longer want to be buying down there given that the long trade in the first place is based on the weekly inverse SHS. Down there, the NL would have been re-entered ie SHS failed.
  • Above is valid only if price action for rest of NY trading today does not change the daily red candle drastically.

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