Watchlist updates for January 12, 2010
Here are my favorites for today:
After yesterday’s lethargy and last night’s fervor, there isn’t much out there that I like.
But, I’m willing to talk about the GBPJPY for the first time in a long time. and it is resting right up against a Daily TL that I have drawn and has made it’s first attempt at leaving it and retested it, so I’m willing to get in on a close back above 148.20. The encouraging thing about the long side of this trade is that it has gone long, away from the 1h 800 and actually come all the way back to it. Often, the following movement is quite strong, the thing to watch out for is that the 2nd long attempt away from the 1h 800 is already showing irregular consolidations…can be a sign of fizzling out.
I’m willing to try a NZDUSD short on a close below .7385, too. It tried to leave its consolidation area long and couldn’t muster the strength to hold it. One wild swing to the south side of the old consolidation area might be coming.
USDCHF is consolidating around the Major Retracement Level at 1.0185 and that is just as significant, if not more so, than it’s 4h 800 consolidation. Simply because it is now at a decision making price point rather than the dynamic area of the moving average. I’m willing to take the trade either direction, but still hold a bias to the long.
I think that’s it for today…not much in terms of favorites, but everything else just looks screwy to me today.
Remember to join me, if you can, for the FX Street webinar at 12 EST.
What are you watching/trading?
Have a fantastic day! 
Triffany Hammond helps traders of all levels, gain the tools, resources and guidance necessary to build on their strengths and work around their weaknesses so that they can make the best possible decisions for themselves in the Forex Market. Triffany is a regular speaker and contributor at 
Thank you Triff,
I took a “long” for test, but backed out….. but still looking. Bottom of my box. holding at the little 1 hour trend line…… I like your point. I got in just under it and didn’t like the feel…… You give me courage…. have a good day.
Oh, I guess I am long yet anyway….. (a little drawdown..)
Got stopped out on a couple trades this morning on the Iran news. Took the other side in several pairs on the other side and did really well
Well, I guess I am long yet anyway….. (a little drawdown..)
I drew a descending channel on the weekly USDJPY from the high June 2007 to date. By my rough calculation there were 4 notable down cycles: June 07 with 50% retracement April 2008. May 2009 with 60% retracement January 2009. January 2009 with 61% retracement August 2009. August 2009 with 61% retracement to where we are now. Does this suggest that we have seen the high of the usdjpy? or close? or is this a channel reversal? The dips are getting shorter and shallower. Buying sentiment appears to be picking up. Its been fairly sharply rejected at the 93 price. Price is trending down with the 800 about 2000 PIPs above; 1550 PIPs below the 200 SMA; 960 PIPs below the 144 MA; 400 PIPs below the 62 EMA. If anyone has a comment, I would be very interested. I am long at higher prices.
This is a screwy week……. bah humbug
I definitely see what you’re saying about the u/j’s weekly patterning, but that is part of the reason I expected, from a technical standpoint, for the pair to reverse to a long position. Everything about that short side seems tired and weak. But it is the JPY and it does have a tendency to misbehave before finding its ground.
My bias is long, too…and it has done a full retracement to the bottom of the 800 consolidation area on the 4h chart. Maybe it is triggering a double top on that 4 hour now and our bias long is blinding us to that.
It really IS shaping up to be a screwy week, though. Yikes.
I think CADJPY might be willing to bounce from 87.8
Thanks Triffany
Triff, even if it is signaling a double top, usdjpy should bounce from the 4 hour support… (hope) then we can see how robust the bounce is or isn’t
the usdjpy may just hit the 800 One hour around 90.23! But that puppy will bounce – hold on and add a tad at 90.3 — would you? Triffany? I plan to do
I’ve got 90.75 labeled as a Major Retracement Level on my charts and when I zoom out to the Daily charts I see that is also the neckline for a very skewed double bottom. So …yeah, I’m watching for a bounce. I probably won’t start adding until I get a close above the muddy area at about 91.20 though.