Good afternoon all on what is proving to be a very quiet asian session.

As things are so quiet I thought I would jot down today's trade as announced on the Yahoo service, where I see it going and why I took it.

The trade is a short on the EUR/JPY, so let's look at why I took it, first the current 4H chart:


Here you can see a strong upward channel that prices were trading inside since the 12th of January, and highlighted in yellow the recent break out of that channel hinting the momentum has shifted. In green are median lines, or Andrew's Pitchforks, drawn of the recent swing high and low pivots which show a project sideways action. The upper and lower lines are project range support and resistance areas, as well as the middle median line.

Now to get a closer look, the 1H chart:


You can see this morning prices re-tested that median line and paused yet again, I took this as confirmation that it will hold and we are heading down to the bottom median parallel around 141.65 and went short after the last inverted hammer at 142.44. Due to my risk management currently, I need to trade this with a tight stop, so I run the risk of being stopped out from a market wiggle, but the set-up for me is a good one, we will wait and see how it plays out through Europe.

Happy trading!

This entry was posted on Tuesday, February 07, 2006 at 2:05:00 PM. You can skip to the end and leave a response.