Saturday, February 11, 2012

11 February 2012 - potential weekend setups


On Friday's close, a promising pin bar formed as a rejection of the 21 EMA, short-term support and a Fibonacci retracement level. How to trade this pin bar is a little tricky. I'll most likely enter a pending long that'll trigger on the break of the pin bar, with a stop-loss around 50% of the pin bar. Take-profit will be set just below resistance at 1760. This resistance level has been respected twice already. The setup should provide a 1:2 risk:reward ratio, which is how I like it.


An inside bar has formed just above a resistance-turned-support level, so this setup is looking optimal. Take-profit has been highlighted below.

What I don't like about this setup is that other yen currency pairs are much more bearish. I assume the neutral-ish tone of the EURJPY is due to a prospect of a breakthrough over Greece. I'll probably trade this, though.

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