I’ve been trading the negative correlation existing between the EURUSD and USDJPY pairs. If you notice, the upticks in EURUSD is countered by the down ticks of the USDJPY pair.
I closed off the EURUSD long as it retests the opening high’s. Given the bearish sentiment surrounding the Greece austerity measures, I left this trade to the short term.
Given this fresh (possible) resistance zone, I closed off my long position off of the trend line earlier. On the other side, I opened a short position on the USDJPY pair. I mentioned in my earlier post of the downwards channel currently forming on this pair. You can view the whole channel in my earlier post. Here is a closer up look on the current pair.
This supply zone seems to be holding up. While it isn’t fresh, there is still a trade to be made on this pair off of this zone. The bullish green candle you see there overlapping the the series of bearish candles is actually a long upper tail. This further suggests a lack of buying pressure as price failed to push higher. With these reasons combined, I sold off this pair. I would not be targeting a take profit to the lower boundary. Realistically, it would be more along the in-between trend line that I have drawn.