USDJPY 12-19-06

12-19-06

USDJPY

There was no short trade entered yesterday at 1.1850 in the USDJPY. The high on the day was only 1.1829. The 1.1785 breakout area was as far as the sell off went. I would still be interested in shorting the 1.1850 area as long as the USDJPY does not base above 1.1825. The 3 to 1 risk to reward on the counter trend short trade will only work if the USDJPY bases below 1.1820 using a 10 pip stop loss. The USDJPY is on the wrong end of the supply, demand curve for a long entry.