Thursday, April 16, 2009

The favourable news that have been factored

Toward the closing of Asian Session, USDJPY found its bottom at 98.15 and posted a reversal piercing candle. By the time London open, USDJPY had recovered its losses  suffered during the Asian session. Prices then moved sideways between a triangle for the next two hours. At  10:40 GMT, the top of the triangle was penetrated but I waited to make a buy entry at 11:00 GMT when prices break the previous top. 

As there will be lots of economic indicators coming during early US sesion, with TIC Long-Term Purchases and Core CPI being at the center I stopped trading 15 minutes before the reports were to be announced. 

Overall, the reports were positive but USDJPY  was  not responsive. It went toppish with a doji evening star at 13:05 GMT. The Euro make a reversal upward about 10 minutes later. This clearly indicated the reports have been factored about 3 hours earlier. 

Early morning during today Asian session, market was quite and traders expected a bit of volatility in USDJPY. Nikkei is expected to rise as Wall Street recorded a late surge of buying interest accompanied by a spike in trading volume. 

Before the Asian open and 24:00 GMT, USDJPY  was moving between prices channel of  99.35 and 99.22. 

My first entry was a buy at 3:06 (0:06 GMT) with Double CCI crossed over the zero line, MACD positive cross and moving over the zero line. After the entry, USDJPY moved pass the 200 ema and the red lag moved over the 15 level. 

At this point the resistance level is at round number 99.50 and the previous high at 99.49. Exited the position at 99.45 for a 15 pips profit. 

My second entry is a short after the rejection of CCI 21 from the 30 sma and negative cross of MACD at 3:33. The blue lag is approaching the 85 level from above. Exited the position when prices touched the 60 ema and MACD went flat at the zero line. 3 pips profit. 

The third entry is a buy at 3:50 with a positive MACD,CCI 21 cross the 30 sma and CCI89 bounced of the 30 sma with the blue lag moving above 15. Target at round number 99.50. Gained 8 pips. 

The final entry is at 4:03 with blue lag cross 85, CCI21 cross the 30 sma and a negative cross of MACD. Target at 200 ema for 8 pips.


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