On My Trading Screen Today

It's been a wild week to say the least. I have had some good, bad and just plain ulgy. The ugly would be my Gbp/Usd trade that I posted about earlier in the week. Needless to say, my positions were stopped out as the Pound went on a bullish rampage.

As of today, I only have 2 trades left open and they both involve shorting the yen. There's a great post over at the Forex Blog today that breaks down the current issues with the yen, I encourage you to take a minute and read it. I've had a long USD/JPY trade open all week, which makes up for the GBP/USD loss, and I just bought a little bit of the EUR/JPY.

I really like the prospects of the EUR/JPY trade. The only reason that I bought a little is because I'm slightly jumping the gun...the pair needs to close strongly to give a solid buy signal. There's a little resistance right where it's currently trading (see chart below) and it needs to overcome this resitance and close above it.

One reason I particularly like this trade is due to the current relative strength of the Euro and the weakness of the Yen. The Yen has been weak across the board and the Euro has been picking up steam all week. This could be a great trade if the momentom conitues. Here's a daily chart of the EUR/JPY with some notes on it:

I will follow up with this trade next week and see how it's prospects look after the weekend has passed. Have a great weekend.

TLT