10/20/2008

Trade # 28: EUR/JPY Short

I am going short EUR/JPY @ 136.90, stop @ 139.10. I will also have a secondary order to short @ 134.50. My target is below 132.

I would like to believe that price made a bottom on Oct. 10th, but the Wave pattern is indicating otherwise. There was a 3-wave rally from 132.26 to 141.73. Then price dropped in what looks to be a trucated 5-wave rally. Over the past few days, a choppy upward consolidation was carved out, and finally, price is starting to break down again. I will try to go short as price temporarily corrects upwards.

There is significant resistance at 137, and I will short in that region:
  • Wave-a highs
  • 61.8% fib of the drop from 138.55-->134.89
  • Weekly pivot point
  • Channel resistance

My stop is above the labeled Wave2 high.

2 comments:

nEveR bORn...NevER diED. said...

I am expecting EURUSD to rebound near 3400 which would make EURJPY to your 13700 target... I agree with your technicals

Narayana said...

Missed the main entry, but got filled on the secondary. Moving stop to 135.