Tuesday, May 29, 2007

European Session 29-05-07

"The trend is in the euro's favor. The main driver is the rate sentiment in the euro zone, where the market is pricing in more tightening."

I hit my next account target (i.e. level 5) before the open of European session. As soon as I woke up this morning, I saw a golden opportunity and hence quickly exited my last week's open short EUR/JPY position at 163.25 for a gain of 34 pips. It was a ghastly experience holding on to this short position over the long weekend holidays. The position was in red most of the time and yesterday was actually quite painful watching over the meaningless price movement due to the market inactivity.

No trade made in this session. But look at this EUR/JPY. One-way traffic. What a reversal! I was fortunate as I did not hesitate to book my profit earlier.

EUR/JPY 5-min chart

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