Slow crawl out of the hole

14.20 gmt

I see some good opportunities but I am not adding any trades until my yen trades recover. The USDJPY is near my entry and looks very positive. The EURJPY has generated a valid long signal so I am a little less worried. The EURUSD still has not generated a long signal so I am a bit worried that it may snap back and try to break 1.29 again. There is a very strong technical attraction to 1.2865/70 – this is where the 200-day MA is currently and also the 50% Fibo of the swing up from 1.2042 – 1.3711 (July ’12 – Feb ’13). Often, a low of 1.2910 can be considered a close enough test of the important level and it might be the case this time. The end of the NY session will make this matter clear. If EURUSD does not break 1.29 today, I’m pretty sure it will bounce up sharply tomorrow, since it’s a Friday.

I’ve been tempted to add a long to the EURJPY, but have controlled myself. The reason being that my risk exposure will increase to an uncomfortable level. I remind myself that if the current open trades end up in profit over the next week or so, my account should be up over +60% for the month, which will be a fantastic result.

Good luck to all traders out there!

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2 thoughts on “Slow crawl out of the hole

  1. smallman

    Hi Zen trader,

    Do you only trade this five pairs or you trade more pairs.
    EURUSD, EURJPY, USDJPY, AUDUSD, GBPUSD

    Thanks.

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    Reply
    1. ZenFXTrader

      I prefer to trade only the majors, and of these the most liquid pairs – so EUR, $$ Yen and AUD – these are the favourites. I trade GBP occasionally, and silver and SP500 even more rarely. Never trade the crosses. I don’t see the point in the crosses – trading the legs is equally or more profitable and the crosses have large spreads.

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