We tried to make an entry into the EURJPY around March 14th but never got the pull back we were waiting on to make the buy entry.  You can view that post at (Forex Investments and Managed Forex Account – Long EURJPY).  Since then the EURJPY has continued its upward move but has recently given us a good entry point on the recent pull back.

Looking at the chart below you can see that since breaking above the trend line it has made continuous higher tops and higher bottoms which is very bullish.  The currency pair has now fallen back to previous support and it is again near the trend line which will also act as support.

We have already entered this trade at 126.90 and have placed a stop loss at 125.90 for a 100 pip stop.  The stop is placed at the sell signal of the previous row of O’s on the chart, this would be considered a quick stop loss as the trend would not have been broken yet.  We would rather use a quick stop loss on the entry as we can always find another entry point if we get stopped out.

The risk on this trade is 1% capital instead of the normal 2%.  This is because we still have a position in the AUDJPY (Managed Forex Account – AUD/JPY Taking a Profit) of 1%.  We do not want to get over extended against the JPY even though we are using different cross pairs.

If you like our technical analysis on the forex market be sure to read all our forex managed account trades on our blog and learn more about investing in foreign currencies with us.