Confessions of a Forex Trader

Sometimes it’s good to have a look at the weekly and monthly charts to have a better idea of where the market is heading. Take a look at the EURJPY weekly chart:

EURJPY

In this chart, it is clear that the market is ranging in between the main support & resistance area. But what is more important is “how” the market behaves when it gets close to the main support area, it gets rejected with strength. This gives us a good idea of where the EURJPY is heading, probably in the next weeks it will het the main resistance area, which is 600 pips from where the market is trading now.

Of course we’ll need to use the short term charts to pinpoint our entry (this way we´ll get a good risk reward ration).

Trade Safe!
Raul Lopez

Tags: EURJPY Analysis, euro-yen, Forex Crosses

This entry was posted on Wednesday, December 2nd, 2009 at 4:22 pm and is filed under Technical. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.