Tradejuice's Trading Journal
Posted 13 February 2012 - 05:32 PM
The Euro rose in early trading on Monday after Greece approved an austerity bill that brings the nation a step closer to securing its much needed bailout.
This move prompted violent street protests in central Athens with black-masked protestors fighting the local riot police outside parliament.
So, what is an Austerity Bill?
Austerity is a policy of deficit-cutting, lowering spending, and a reduction in the amount of benefits and public services provided. Austerity measures are typically taken if there is a threat that government cannot honor its debt liabilities.
Euro zone finance ministers also expect Greece to explain how budget cuts will be achieved before it agrees to the bailout in a meeting on Wednesday. So, watch out for that later on in the week.
Meanwhile, The Bank Of Japan started a two-day policy meeting today and is expected to make its commitment to an inflation target a lot clearer by the end of the meeting.
News Watch For EURJPY
The Japanese Yen Real GDP figures were released a few hours ago, so it's plain sailing until tomorrow where there are least 4 high impact news releases scheduled. More news on that tomorrow.
On Friday I got a signal to enter a short position, so I went ahead and entered a sell trade once there was a close below the black, dashed trendline. See the chart below:
I entered the sell trade at 102.376 and placed my initial target 40 pips away. I closed half the order when price reached half the profit target and moved my stop loss to breakeven.
With 20 pips in the bag at that stage we were in a free trade, but as you can see, price bounced off the lower bullish channel trend line and we were taken out of the position completely.
I am actually glad that I was taken out of the trade before the market closed on Friday as it helped me to avoided the price gap which occurred when the market open this week.
As it stands, we're currently bullish and waiting for an entry signal to enter the market to the long side. However, we could see one of two scenarios play out today.
Price may surge beyond the 103.300 level and should my system provide a buy signal, I'll be entering to the long side. On the other hand, we may see price fall below the lower bullish channel trendline or the 102.750 level. In this case I'll be looking to my system for a sell signal to enter the market to the short side. I'll keep an eye on how it plays out and give you an update in my next report. All the best!
Posted 14 February 2012 - 05:44 PM
The Euro advanced on what many analysts believe to be relief over the Greek parliament vote to approve new austerity measures. Greece is not in the clear just yet.
Euro Zone finance ministers will meet on Wednesday to listen to Greece explain how this year's total budget cuts will be achieved before it agrees to the bailout deal.
Meanwhile, the Bank of Japan unexpectedly announced further stimulus measures in order to bolster the country's economy on Tuesday which saw the Yen weaken.
News Watch For EURJPY
There were three High Impact news releases for the Japanese Yen today and just one for the Euro which have already been completed so the market has since stabilized.
The main event to watch out for over the next few days will be the Euro Zone meeting on Wednesday.
I got a valid entry signal for a Sell trade late on yesterday so I entered to the short side and was able to exit with some profit. Take a look at the chart below:
I entered the sell trade at 102.123 and placed my initial target 40 pips away. The was a little bit of slippage but I managed to close half the order when price reached the 101.954 level (approximately half the profit target).
Price was moving pretty quickly at this point so I moved my stop loss to breakeven right away and was effectively in a free trade.
I was taken out at breakeven not long afterwards but I managed to bag at least half the profit.
As it turned out, price moved up strongly so at the moment, while there are no clear signals forming, I'm keeping an eye on the 103.300 area.
We could see price react around this level. As price approaches this area, it may either break through it or bounce off it, so I'll be looking for a signal around this region.
For now though, we'll have to be patient and see how it plays out. All the best!
Posted 15 February 2012 - 03:31 PM
The Bank of Japan boosted its asset buying program yesterday, which led to the Yen weakening against the US Dollar and the Euro.
This impact may be shortlived as continued worries over the Euro Zone crisis means many investors still view the Yen as a safe haven.
Later today, Euro Zone finance ministers will meet to listen to Greece explain how this year's total budget cuts will be achieved before it agrees to the bailout deal.
News Watch For EURJPY
There are no High Impact news events scheduled for the rest of the week for the Euro and Japanese Yen pairs.
Keep an eye out for reaction from the Euro Zone meeting later on today.
Price went on to reach the 103.300 level so we're looking to see whether it will advance further or fall back down to the south.
Should price continue moving upwards we can target the upper bullish channel trendline. On the other hand, if price reverses and starts to fall, we can target the lower bullish channel trendline or the 102.750 level.
As it stands, this pair remains Bullish, but my system shows no clear signals for a trade in either direction right now.
We'll see how it plays out over the course of the day and I'll be sure to give you an update in my next column.
Take care out there and all the best!
Posted 27 February 2012 - 05:30 AM