Forex Market - Dec 9th 2009

Posted on December 10th, 2009 by James Alliss.
Categories: Forex.

GBP/USD broke 1.6250 early this morning and held at 1.6166. I couldn’t get a safe entry on the pair so didn’t trade it. However, I’ve been waiting for USD/JPY to hit key support @ 87.50 and today we saw it. I’ve taken a long trade USD/JPY @ 87.86 for a number of reasons.

1) The Daily Chart is showing a 50% retracement level based on the most recent high and low swing points.

2) We have hit the 4 hour 50 SMA

3) 87.50 has acted as support previously

4) Pivot point S2 was hit

I am not disclosing my stop here but I’m targeting a move back up towards 90.50. Will price get there? I don’t have a clue but I’m aiming for 1:2 risk reward on the trade. If I lose then so be it, that’s trading and the most I will lose is 2%.

I’ll sit back and see how this plays out.

James.

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