I do have my favorite pairs, and the Pound/Yen is one of them. I'm watching the pair approach a trend line this morning and if it breaks through on the hour chart, I'm going to sell. The low of the 0300 EST bar on 2-20-09 and the low of the 0800 bar on 2-27-09 are the two points of the trend line. I'm looking for a close below this line. If it closes below that line, I'll sell the pair. One of the trend lines we used as a target for the last Pound/Yen trade is also useful here. It is currently about 100 pips below our entry line. If it closes below that line, I'm going to add to my position. It may bounce off of that line as well so I'm going to go to break even at +50 pips on this trade (usually I would wait for a +100 move before break even). My stop loss would go above the 139.50 level maybe 139.70. I'm looking for the pair to go down as far as 131.00 (if we get lucky). I'll keep you posted.
Happy Trading!
Happy Trading!
