RE: GBPJPY

GBPJPY has made the break, and has just past a major psyche level at 155. If you were able to get in, and are up 40-50 pips, move stop to B/E or take profit at will. Right now, my 2 confirmation pairs, the Cable and USDJPY are moving down together. If they reverse, it might be a good time to TP.

GBPUSD

I'm watching for a clear break above 1.6251, with first resitence at .6292-.6200. Watching for a clear break down, below .6225, with first resistence at .6200. First TP on a Sell at .6168. First TP on a Buy, .6372.

VIDEO: Part 2 of 2 - Review of S/R levels and the GBPJPY

PART 2. Forex Video Review of S/R levels on posted charts, and going over S/R breaks on the GBPJPY. PART 2 OF 2

CHART: S/R Levels For Some Of The Major Pairs

Here are some of the charts I watch, of some of the major pairs. S/R levels are in orange.
Click on picture to enlarge.

UPDATE

Excuse the lack of posts this week. I had to take some personal time to take care of some family obligations. All is fine, but I'm physically and mentally drained. Had to take a few days off from FX. I won't trade, and don't recommend you trade either, unless you are 100% mentally.

Will be back at it on Monday, after a weekend of rest..... New videos, posts, and will probably be opening the live webcast room before the end of the month. I will keep you posted on that.

CAD Employment numbers are coming out in a few hours, and this event usually provides some fireworks, especially on the CADJPY and the EURCAD. Check the calendar at the bottom of the page (click on it and scroll down if need be). We also have USD Trade Balance numbers shortly after the CAD Employment.

VIDEO: Review of Price Breaks of S/R and Psyche Levels

Video review of moves made, and how they relate to the method of watching for major S/R breaks and Psyche Level breaks, outlined in yesterday's video.
(If you haven't seen yesterday's video, you might want to watch it first.)

RE: GBPUSD

GBPUSD Moving up nicely.

VIDEO: Chart Preview going into London, Tokyo Review

Move has already begun on the Cable. This is why I think a live room would be better. Don't forget to answer the poll question to the upper right of this page. Thanks!

RE: GBPJPY and EURJPY

Both these pairs have made breaks already and are steadily moving up.

VIDEO: London Review EURJPY and Tokyo Preview

Not mentioned on the video is that the GBPJPY is also forming a consolidation squeeze. The shape is more of a wedge, but nonetheless, a squeeze is happening, which is normal for this time of the trading day. Also, EURJPY is forming a consolidation wedge.
See GBPJPY Chart Below Video

Summer Holidays and Volume

Long list of news coming out today. JPY unemployment, and GBP-GDP. Check out the news schedule at the bottom of the FXTradePros.com home page. GJ is in a 50 pip range, continuing where it left off on Friday, with nothing really setting up.

Just want to note, Summer is a slower trading period, with less volume. A large portion of the market volume is traded by financial institutions, Bankers. This is the time of year that they take their Holidays. Volume gets thin, and volatility can set in. So be aware. Especially during news time. Sometimes, news is one way, but the market goes the other. Keep a very close watch on open trades. PA is rather unpredictable this time of year.

Daily Webinar

On the right side of the page, you will see a poll, asking what your interest might be in a Live room, where all the guests can view my charts, and hear me speak as I analyze setups, PA, and answer questions. No downloads required. Of course, this would be a free service for the first month or two, maybe more, until we see what the response is.

Please give your answer if you would like, in the upper right side of this page. Thanks!

VIDEO: Chart Review Going Into Tokyo Session

Video review of charts going into Tokyo. Quiet time of the trading day, so not a lot of exciting setups to look at. I will try to get videos posted prior to London and Tokyo sessions, on a more regular basis.

What is setting up that wasn't so clear as I was recording the video, is a Consolidation forming on the Cable and the EURUSD. Consolidations for this time of day are normal, because there are no major markets open. NY closed 2 hours ago, so the volume decreases, and so does the swing in prices, so they start to squeeze. Once Tokyo opens, price needs to move somewhere so, they will break, it is just a matter of "how far." This is the reason I like trading the openings of the major markets. You know the prices will move, and if it is in a tight range or a squeeze, you can expect a break. It is just a matter of "when" and "how far."

There is some news coming out at the beginning of the Tokyo session, primarily Trade Balance numbers, so be aware if you have open trades. Check the calendar at the bottom of the page for the exact times.

Tokyo Session and Review of London

This is a review of a trade from the London Session on the GBPJPY. Then there are a couple different charts reviewed going into Tokyo session.

VIDEO: Chart Review Going Into London Session

This is a Video Review of a couple trades setups in the Tokyo Session, and a review of a couple charts going into the London Trading Session. Even if you missed the trading session, and this may be days or weeks old, the videos found here are mostly review of trade setups and what to look for. It is to help you learn the chart patterns, and to train your vision in what to look for when looking at your charts. It may seem monotonous, but it doesn't hurt to see the same setup over and over again. It is how we all learn. I believe, you can never study Forex enough, no matter the method you use. Even if you are using a auto trading robot, you need to learn the basics to understand the concepts behind the forex trade.

EURJPY setting up the same way as the GBPJPY

133.26 is holding as support and 133.69 is holding as top. a Break on either JPY pairs maybe short lived, or it could carry into London, so if you take a trade, keep stops tight or keep a close eye on the PA. The week is young, don't force anything. 158.50 and 139.69 may keep them contained, as PA has slowed down this hour so far.

Video: Trade Setups, and Q&A From the London Session on Friday June 19, 2009

This is a video review, in 3 parts of Friday's setups, going into London Session, and a further explanation on some Q&A posted on last Friday.

Part 1 of 3 EURJPY and GBPUSD

Part 2 of 3 GBPJPY

Part 3 of 3 Q&A Review

Q&A From Friday's London Session

Q: I notice you post 1Hour charts, do you only trade from this time frame, and do you only trade the setups you have been showing on your blog?

A: Yes, 1H. It is what timeframe I did most of my learning on, and now it is the best timeframe, for me, as far as reading PA. To put it in other words, "I prefer the 1H charts because it is what I am most comfortable with."

As far as the trade setups I post? I have the most faith in the type of setups I post on the blog. I try to stick with very high probability trades when I trade, and especially if I am going to post them. I know there are a lot of noobs (newbies, or new traders) that come to the blog looking for trade advice, so I'm just trying to keep responsible in that regard. As far as the setups, I think a few of the other readers will attest, that when a break occurs on those setups, you can always catch a few pips, 10-20 for sure, most of the time 30-50. That is, quick trades, usually no more than an hour or two. The problem is holding too long, and giving all the pips back, while waiting for the 100 pip moves. I will take the 100+ pip trades when I can get them, but I will try not to let a price reversal, wipe out all my profit. A pip is a pip is a pip! I also make most of my trades just an hour or two before Tokyo open, and the same going into London on those setups because that is when the "squeezes" occur most often. I also like the PA during those times, because it is usually more predictable. It keeps trading hours reasonable.

Up until just a few months ago, I was trading 18-20 hours a day. I'd catch the first few hours of Asia, then sleep a couple of hours. Alarm would wake me, and I'd do the same for London. Sometimes I'd hold trades through London and not sleep before NY. I was always exhausted, grumpy, and had not time for my kids, or myself. to top it all off, I was starting to make bad decisions, and I was deviating from my trade plans. My trading became emotional, and that is BAD. I was getting burnt out, and had to do something, or otherwise, I was going to need to find a new profession. Now, I've simplified things and cut my trading day down to about 6-7 hours. I wish I would have done this years ago.

Below, I've posted three charts. These are some setups I mentioned on one of the bulletin boards, this Friday going into London Session.

There was a wedge on the EURJPY that pushed up against the 134.50, and broke for 60.

There was a consolidation squeeze forming on the GBPUSD, and once it broke the .6372 resistance line, it broke for about 65 pips. Point being, there was room on these two setups to easily pull out 30-40 pips.

The trade I took, just because I've recently become most comfortable with the PA on the GBPJPY, was a break out of a range (green dash lines), and I entered on a break of the 158.50 psyche level. I got out of it with 100 pips on this trade. I didn't trade all three setups because, the 2 Yen pairs are too closely related. My first choice was the GBPJPY, and the other two were linked somehow, and have too similar PA. Any moves, if negative would have been, a double loss, so that is why I only traded one. The green lines on the GBPJPY was the range I was watching. I waited for the break out of the range at 158.25, and then I waited for confirmation of the move, watching for a strong break of 158.50. This is when I entered the trade.

The other two setups were not as clear cut as they usually are. As I had mentioned on the board posts, around the time the setups formed, PA was iffy. I didn't like the PA at all. The price whipped in both directions too much, and didn't keep in the squeeze zone as I like to see them do. But looking at the charts now, they really weren't that bad. (It's easy to say now when you're not putting up real money.) For me, the GBPJPY was the clearer setup. I'm just glad I took the GBPJPY because it always moves the most, and it netted the most pips out of these possible trades.

(A video covering these charts. the setups, and the reasoning behind them, will be posted soon.)

VIDEO: Psyche Levels, GBP Retail Sales, GBPJPY Going Into London

Discussion on using "Psyche Levels" for support and resistance. Outlined consolidation squeezes on the EURJPY and the GBPJPY just before Tokyo. Also discussing risk aversion, the USD and GBP Retail Sales, and a buy taken on GBPJPY.

(To enlarge, click on button next to HQ at bottom of screen)

RE: AUDUSD

AUDUSD has made the 30-40 pip move I suggested. Watch for this .7980 area to hold as support, or it could slide back down. Would be nice if it would hold, to see if it could make another run up when London opens in just over an hour.