Site Meter The Lawyer Trader: Usd/Jpy: Nothing Goes Straight Up or Down

Thursday, March 5, 2009

Usd/Jpy: Nothing Goes Straight Up or Down

The Usd/Jpy is pulling back pretty strongly this morning...don't know why but then again I don't usually ask why, just try to trade the chart patterns. The pair has been trending up for a while within a good channel, here's an hourly chart with a linear regression trend channel that shows the current uptrend.As you can see, the pair has been steadily trending for some time now. Does this break signify the beginning of a trend change? I don't know...my gut says no but I'm biased because I'm long the pair. Nothing goes straight up or down (or at least it is a rare occurence) and a good pullback is probably long overdue. I added a little to my position this morning and am sticking with the "buy the dip" plan until I'm proven wrong. I'll know I'm wrong when my stops are hit (still a couple of hundred pips away from that) or when my system registers a sell signal on the daily chart...sell signal will probably register if the pair closes below 96.70 level. Since neither of those conditions have occured, I'm adding.

Good luck out there.

TLT

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