Sell EUR/JPY Analysis

As promised here are charts to support the world's call for us to help promote recovery from the economic woes by buying EUR/JPY. See the previous post directly below for the details of entry and exits.

First is the "Amazing Stealth Forex Trading System" Click Here! to check this system out.


We have a classic 1-2-3 bottom and the proprietary "Amazing Stealth Forex Trading System" indicators both showing buy signals. Click Here! to check this system out.

Next I show two J-Charts:



If you compare the one right above to the previous 500 day chart shown for the 1/13 EUR/JPY short foreign currency trade sale, you will see the same cave is now getting filled in, but this time moving from below and up.

New Trade Setup: Buy EUR/JPY

The world calls for our help once again. Will post the complete analysis later tonight, but you can review the Sunday Jan 13 post and follow ups to the EUR/JPY short foreign currency exchange trade to get the picture. What is happening is as I said when the SELL trade was closed out, I expected the "cave" would need to be filled in more, so a reversal was due sooner or later. Well, now it is here. Buy EUR/JPY (currently 158.04, I got in at 157.81) with stop loss of 157.06 and profit target of 160.44.

EUR/USD Short Trade Hits Target- +223 Pips

The short EUR/USD currency exchange pair sale hit the profit target at 1.4434 around 8:30 PST for a healthy profit of +223 pips. Remember to be grateful for the opportunity to serve the world forex marketplace.

EUR/USD Short Trade Update- Now +120 Pips

Currently the EUR/USD foreign currency exchange pair is trading around 1.4535. I have adjusted the sop loss for this forex pair to 1.4570, locking in a profit of 87 pips. I have adjusted the take profit order to 1.4434.

Update on EUR/USD Trade- +20 pips so far

Almost hit the stop loss with high of 1.4715 since entering the EUR/USD currency short forex trade. Currently, about 1.4635, giving +20 pips since entering at 1.4657, but the FX pair has been up and down so far. I will hold this position and continue to have the same stop loss and profit target as previously posted.

The Yen Carry Trade: What does that mean?

A good friend of mine who is well-versed in the financial world, and quite successful with his money I might add, asked what I was talking about when I said the "unwinding of the Yen carry trade was a good trading opportunity."

The Yen carry trade is a specific example of a strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates - which can often be substantial, depending on the amount of leverage the investor chooses to use.

Here's an example of a "yen carry trade": let's say a trader borrows 1,000 yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent amount. Let's assume that the bond pays 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% (4.5% - 0%), as long as the exchange rate between the countries does not change. Many professional traders use this trade because the gains can become very large when leverage is taken into consideration. If the trader in our example uses a common leverage factor of 10:1, then she can stand to make a profit of 45%.

The big risk in a carry trade is the uncertainty of exchange rates. Using the example above, if the U.S. dollar were to fall in value relative to the Japanese yen, then the trader would run the risk of losing money. Also, these transactions are generally done with a lot of leverage, so a small movement in exchange rates can result in huge losses unless hedged appropriately.

So the "unwinding" occurs when the investors needs to get out of the trade to avoid the aforementioned huge losses. That's where volatility is generated as well- the risk of huge losses leads to "panic selling." And this also explains why my good friend is not familiar with the term: he invests in relatively safe, low risk (beta) vehicles.

Sell EUR/USD

The market is calling again for our service to world trade. Sell EUR/USD, currently 1.4657 and set a stop loss of 1.4722 and take profits at 1.4411.

The J-Chart is shown here:

EUR/JPY Short Position Closed for +380 Pip Profit

Profit target of 157.38 met from opening sale at 161.10. At this time, I expect the pair to reverse and return to fill in more of the cave shown on the 1/13/08 post J-Chart. I say it is safe to buy here (currently 157.28) with tight stop loss of 157.18 or 157.08.

The J-Chart service has been down with the CME Globex crash of 1/14, so I am reluctant to project lower targets if the pair continues to fall. Nonetheless, eventually the cave will get filled.

Update on the EUR/JPY Short Position

Hoping everyone is grateful for the opportunity to serve the world trade by selling EUR/JPY. We have hit the first profit target at 158.73. Your choice at this point was to either take some or all of your profits, or move the stop loss to 158.73+ .10 to .20. , that is 158.83 to 158.93, depending on you, your risk tolerance, and your foreign exchange trading broker.

Bearish Signs Point to Falling EUR/JPY

It has been a while since I have posted to my blog. I hope you have been profiting in the New Year with the nice volatility. Tonight's analysis points to continuing unwinding of the Yen carry trade, as bearish signs indicate the EUR/JPY is about to lose support around 160.50 with 157.38 to come.

First let's look at the "Amazing Stealth Forex Trading System" Click Here! to check this system out.

Here we see a bearish triangle formation and both the stealth indicators showing bearish signals. The triangle formation is classical technical analysis that applies to equities, currencies, etc. The proprietary "Amazing Stealth Forex Trading System" (Click Here! to check this system out)
indicators show RED and YELLOW signals as seen along the bottom of the chart.

Now let's look at the J-Chart:


Here for the EUR/JPY forex pair we see the 500 day balance point at 163.35. The foreign exchange pair has been trading lower, heading to the cave indicated by the green rectangle. Any of the Red lines can be used as stops depending on your risk strategy, and the targets lying below for the FX pair of the EUR/JPY are shown in green.

Enjoy and remember to be grateful for the opportunity to serve your fellow man through facilitating the world economy.