Things are getting very exciting as we are seeing some major trend changes, mostly dealing with the JPY.  I had talked about the EURJPY a month ago in two different blog post (Forex Investment – Has the JPY trend changed?) and (Go long the EUR/JPY?) showing that it looked like the trend was changing.  We now have some major confirmation that the trend really has changed and it is time to go long.

When we look at the chart we can see that the pair has been making higher tops and bottoms for about 2 months now.  It has also clearly broken the trend line and has had 3 buy signals above the trend line and no sell signals.  You can also see that on Friday the pair broke a triple top which is a very bullish indicator.

Now it is time to get long this pair.  We must remember from the post (Forex Investments – AUD/JPY Update) that we are already long the AUDJPY pair so there is a need to be cautious and not over extend to much against the JPY.  For this reason we should only take a 1% position and not our regular 2% position like we have now with the AUDJPY.

You can see in the chart below we will be waiting for the pair to pull back closer to the area of support.  Our entry position will be at 123.45 and a stop loss at 120.95.

Be sure to check out all of our trades on our forex investment blog and join our managed forex account.