Confessions of a Forex Trader

Earlier today, during Bernanke speech,  the EURJPY broke the range it traded in for the last 10 days:

EURJPY

This breakout activated a bearish market condition in the EURJPY. As long as the EURJPY keeps trading below 111.47 I will be looking for short opportunities.

Feel free to comment.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

The EURJPY is trading in a short term range around a LT important level:

EURJPY

You know that when the market is trading at an important level, we need to wait before looking for trade opportunities (we are market followers,instead of magicians).

Once the EURJPY breaks the range on either side, I will look for trade opportunities in the direction of the breakout.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

Even though the EURJPY is trading in a short term range, it is still in a bullish market condition:

EURJPY

A lot of traders make the mistake of trading both sides if this range, even when the EURJPY is ranging in the short term range, it already got rejected from an important LT support level, triggering a bullish market condition.

So even when it is ranging in the ST charts, I’m only looking for long opportunities in the EURJPY.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

Since last Tuesday that the EURJPY traded in a short term range around a LT support level:

EURJPY

However, looks like the EURJPY wants to reach higher levels, its about to break the short term resistance level around 109.03 (if this happens it will trigger a bullish market condition).

As long as the EURJPY continues to trade above 109.03 I will be looking for short opportunities.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

In the last 4 or 5 the EURJPY was trading in a well defined range from 113.08 to 111.88. Well, earlier this morning the EURJPY broke through the bottom of the range:

EURJPY

Only short opportunities are in play. As long as the EURJPY keeps trading below 111.88 I will be looking for short opportunities.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

The EURJPY is trading in a very well defined short term range, the kind of ranges that are easy to trade:

EURJPY

The rules are easy: look for long opportunities around the bottom of the range and look for short opportunities around the top of the range of the EURJPY.

Of course, TP orders in the EURJPY should be placed at the opposite extreme.

Trade Safe!

Raul Lopez
http://www.straightforex.com/

A few days back I wrote about the bearish market condition in the EURJPY, today I can confirm it, it is trading in a bearish market condition.

I’m currently looking for short opportunities in the EURJPY:

EURJPY

What it’s a little tricky, is how to get the next LT support level, we need to go to the weekly chart and get back to 2001 to determine the next LT support level.

Anyway, the EURJPY is bearish and short opportunities are in play.

What do you think?

Trade Safe!

Raul Lopez
http://www.straightforex.com/

Earlier this morning, the EURJPY did a false breakout of the short term resistance level (upper green resistance) but it bounce back, and a few minutes ago, it broke through the support level, triggering a bearish market condition:

EURJPY

Now, if this breakout follows through, do you have any idea of where the EURJPY could be heading? There is no near support in the daily, not even on the weekly charts, you have to take a look at the monthly charts to get the next support level, and this is what I got: 106.78… right now it is trading at 112.13, so more than 550 pips before we hit the next LT support level, we need confirmation though, I will keep you posted.

Trade Safe!

Raul Lopez
http://www.straightforex.com/