Good entries in the yen pairs; cable not so good

15.05 gmt

My entries in USDJPY (today) and EURJPY (yesterday) have been good – I followed my rules fully 🙂 Both pairs have taken off like rockets today, which augurs well for big moves ahead.

The cable trade has been bad. The original sell signal at around 1.6380 on 4 Dec was correct, but I was shaken out and flipped a couple of times in the past 2 days, against my rules. It is still in the ‘short’ category as per my system rules, but is toying with levels which are signalling an end to the correction. It has barely corrected so far – for a reasonable correction we should see a test of the 1.62 level.

EURUSD has been a very unpredictable pair to trade for the past few weeks. Large candles, sudden reversals, and moves against the data. My system rules don’t seem to work with EU very well lately. Actually they do work, but I would have to leave stops of nearly 150 pips while the resulting moves are usually less than 100 pips before it reverses. So I don’t get good risk:reward trades in this pair. But it is interesting that it is rising despite all the bad data and the US Fed taper – for the past year or so,  there is a deep groundswell of buying support in EURUSD which is very intriguing. It points to something under the surface that we can’t see, but we can feel it!

I’ll watch the markets for another hour or so, and perhaps cable might give a long signal, which means I might quit my short cable position.

Good weekend to you all!

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