FOREX Training Video | London Session April 22, 2008

After the EUR/USD fibbed it's way down to a 50% retracement of the recent rise from 157, the EUR/JPY completed it's run to the daily S2 reversal pivot point. While the EUR/USD was forming a double bottom on this fib and hourly 200 ema, every single Japanese Yen pairing was starting to show divergence on the 15 minute chart MACD & stochastics. This was a very large clue that a rise was on the way, now we just needed some confirmation along with a way to sneak our entry in safely. As the German DAX, S&P, & Dow futures began to rise, Gold began to rise, oil began to rise (so USD fell) and the Yens started to work on upward. After the EUR/JPY hit it's 21ema on the 15m chart we were able to put together a very low risk, high probability entry plan around the 50% retracement on shorter time frames with confirmation. Along with all the other correlations going on simultaneously the trade risk was very much in our favor. The target was at least our daily CPP for an S2 to CPP day around 164.35, with our main target around the daily M3 at 164.60. The retracement to 50% offered us an entry window around 163.50 risking around 20 pips to get 100, very nice indeed, and even with confirmation in the form of stochs, and a 1m 5/8 cross. Whether you only traded this EUR/JPY setup or a correlated Yen basket, you had great success and were able to lock in B/E, and your profits quickly. Sweet pullback session indeed.

FXBootcamp London Currency Coach- Christian Stephens