The Pound/Yen pair has been trending nicely upward, away from its downward trend for the last month or so. I'm looking for the pair to correct and move back toward its main trend. I've drawn a trend line connecting the lows of the one hour bars at 0300 EST on 2-20-09 and 1900 EST on 2-22-09. If you draw that line you'll see that the prices over the last several hours have been respecting that line. If the price closes below that line I'll sell and look for the pair to get down to a lower trend line drawn based on the low points of the hour bar at 0400 EST on 2-17-09 and 0400 EST on 2-18-09. If it breaks below that it could get down into the 129.00-130.00 range. I'll set the stop at a 10 pips or so above the recent high (which could change significantly between now and when the trade opens). This is a volatile pair so I'll let it move 100 pips before moving to break even. I'll keep you posted.
Happy Trading!
Happy Trading!
