June Trade # 16 - BUY USD/JPY

June 12, 2009 3:05 pm (Manila)

Took the pair out at breakeven. A 'shooting star' just formed on the hourly chart. I am allergic to shooting stars when I am going LONG. For me, it's a sign of bad things to come for this pair. The pair appears to head for consolidation.

I am calling it a day, pack my bags ad count my gains for the week.

It was a spectacular week of trading!

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June 12, 2009 1:10 pm (Manila)

BUY USD/JPY @ 97.92
STOP - 97.17
Limit 1 - 98.22
Limit 2 - 98.84

Fundamental Reason: At about 9:55 pm (Manila) today, the University of Michigan Consumner Sentiment data will come out which should be better than previous and better than expected. This whould be bullish for the greenback. Investors holding Yen will dump the lower-yielding Yen in favor of the slightly-higher-yielding dollar.

Technical Reason: On the daily chart, the pair went sideways the past few days after a relentless rally last week. The pair could resume its upward movement now that the pair is no longer overbought. On the hourly chart, the pair broke through the 20-hour MVA with the closed stick (about 12nn today). Normally, when this happens after coming from the lower bollinger band, the pair goes on all the way to the upper bollinger band.