I am going to start a trader’s journal, in which I will jot down my latest ideas put in action. A journal helps keep the trader honest and disciplined. It also works as an archive of entry and exit logic, which can be researched later for refinement.

So it is just past 1:00 AM ET. I shorted the EUR/JPY, and AUD/JPY after the market started with a gap downwards, then filled the gap. When the market started to reverse, that is when I jumped in for both pairs. The EUR appears to be weaker than the GBP, and AUD is weaker than the CAD, so these were candidates to short against the yen.

However, I set up alarms for both for an emergency exit in case the market reversed back up. This alarm went off, and I exited both pairs; AUD/JPY netted, 74.76-74.50 (26 pips), and EUR/JPY netted 109.24-108.77 (47 pips). At the same time I exited (short-covered), I shorted the USD/CHF and got filled at 1.1649. I have a stop at 1.1688 and target at at 1.1560. However an alarm at 1.1585 (50% retracement) is set to start thinking emergency exit. 1.1618 is another minor low that may serve as a pivot, so very close monitoring for the next couple of hours or so.

Meanwhile, I will monitor the EUR/JPY and AUD/JPY pairs for re-entry. They are both developing negative reversals in the 15-min time-frame, and as long as the RSI in this time-frame for these pairs are below 60, I will be looking for topping of the current rally attempt. The SMA 50 in both may help .

Will update soon.

Fan Yang
Currency Analyst
Commodity Trading Advisor
fyang@fxtimes.com

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