All the way back in March 2009 we took the trade to go long the AUD/JPY at 62.15 (Forex Investing – AUD/JPY Trend Chage – Go Long). Now almost 8 months later and the trade is still in an uptrend and has reached a high over 85.15 which is 2,300 pips higher. Today now in the 82 range we continue to stay in the trade as the trend has not changed.
Looking at the chart we can see it has pulled back several times to the trend line. It actually broke the trend line twice however it has never had a sell signal at the trend line or below the trend line which is necessary to confirm a change in trend.
So we remain bullish on this trade however it has gone up so much that we are cautious that a change in trend may be near. We have moved our stop up again this time to 78.90 which would both break the trend line but also be a sell signal directly at the trend line and would confirm a change in trend.
This new stop loss assures us a profit of 1,675 pips. I would say that is a pretty nice trade so far.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
We have been a little quiet here the past few weeks as we have been holding off on making any other trades. Most of the charts are looking over extended and need to see a big pull back or a long period of consolidation to make the charts look attractive.
We are still long the AUDJPY as you can see from our previous post (Managed Forex Account – AUDJPY Trade Update). The chart has really taken off and the AUDJPY has been up above 80.40 at one point which is over 1,800 pips higher than our entry point at 62.15. The chart continues to show higher tops and bottoms above the trend line and all indicators continue to point up. It is very possible that we could see a strong pull back closer to the trend line but we will remain in the position as long as the price is above the trend line.
The stop loss has again been moved up along the trend line to 69.33 which will give us at a minimum over 700 pips on the trade.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
We have now seen one more currency see its trend turn against the USD. The Euro has now made its first buy signal above the trend line against the US dollar since the beginning of the big decline in July of ‘08. You can see on the chart how it made a very strong attempt back in December of ‘08 but never made a buy signal above the trend line and then fell back down to almost the previous lows. However it got support just above that and was able to make a higher bottom.
Right now it is a wait and see moment. If the pair falls back down near support and the trend line we will be looking to go long this pair.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
As you know if you follow our forex investment blog we have been long the AUDJPY for over 2 months now as you can see from this post (Forex Investing – AUD/JPY Trend Change – Go Long). Our initial entry position was at 62.15 with a 2% capital risk and 125 pip stop loss. The currency pair shot up right after our entry point and we then sold off half our position at 72.15 for a 1,000 pip gain and an 8% total gain on our capital, you can read that post at (Managed Forex Account -AUD/JPY Taking a Profit). We still hold the position of long the AUDJPY with our 1% position size.
We have since seen the pair continue higher while making another higher top and higher bottom, more bullish signals. As you can see from the chart below the bullish trend continues as we continue to raise our stop loss along with the trend. We have now moved our stop loss to 66.60 which at a minimum guarantees us a gain of another 445 pips. The stop loss is actually set two boxes below the trend line because we want to also include the previous support set near the trend line.
We will continue to monitor this trade and raise the stop loss along with the trend line and previous support levels.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
In recent blog posts we have shown you how the USDCAD, AUDUSD, and NZDUSD have all changed trends and now we have another currency showing strength against the US dollar. The Swiss Franc (CHF) has now broken the trend line and looks to strengthen against the USD.
Looking at the chart we can see that the USDCHF has now given a lower top with two sell signals, the most recent breaking the trend line on the 1% point & figure chart. Right now we will have to wait for a better entry point but will be looking to possibly go short if we see a bounce up to the 1.16 area.
If you like our technical analysis be sure to read more of our forex investment blog and learn more about our managed forex account.
The US Dollar is starting to see several of its trends changing. We have seen the AUDUSD and the NZDUSD charts both change trends and gain strength against the USD. Now we see the Canadian Dollar do the same thing as this week it has broken the trend line on the 1% point & figure chart.
Looking at the chart below you can see it hit resistance in the 1.30 area four times but was never able to break through even though it looked like it might as it was making higher bottoms while hitting resistance. In the past few weeks however we have seen the chart make 2 lower bottoms and 2 lower tops which we have not seen the chart do since the begining of this up trend.
I would expect that in the next two or three weeks we see a bounce in the pair back up to the 1.21 to 1.23 area where we will look to take a short position on this pair.
If you like our technical analysis be sure to read more of our forex investment blog and learn more about our managed forex account.
