Day Trade Setup Review 10-01-2013

by Marco Hering

Day Trade Setup In USD/JPY

In this day trade setup review,  I will be concise on my trades, I will post more setups in the next few days.
On the calendar we had some ISM Manufacturing PMI that came in better than expected, this gave the USD a temporary lift.  I was expecting a stronger JPY from a fundamental and technical standpoint. The JPY is widely regarded as safe haven currency and with the government shut down in the US,  I was expecting risk-off hitting the market. From a technical perspective the USD/JPY made a new low and retraced back the EMA cluster. I took a short yesterday after the US session with a stop at 99.20 when I saw some weakness. I took a short today, in the account for the European session live room as well with a slightly worse entry level, but I got out at a better level than on my other account. The result was the same: My trailing stop got hit for +20 pips on both accounts.

Day Trade Setup on CAD/JPY

The CAD/JPY was also another great live day trade setup for a  short. The pair broke the EMA cluster and re-tested the cluster from below. I got short at 95.32 when it moved below the EMAs again and closed the trade for +47 pips. The entry for the live room in the European session was 95.17 and members got +34 pips on my exit there. I remain bearish on both pairs but right now the downside momentum has faded a bit. Targets would be 97.10 in USD/JPY with 98.85 SL and 93.10 in CAD/JPY with a stop at 95.80. Trading the JPY pairs can be more difficult than trading other pairs. The JPY cross pairs tend to move aggressively. The USD/JPY is known for being very choppy. Stops should be placed a bit wider since you don't want to be stopped out on spikes which can always occur.

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