Hello everyone.

If you look back, we had entered a sell in the GBP/JPY at 204.56. The current market price is 199.90.

Look for a continued down movement and a target area below 190.00.

So, what do you do after your trade has moved heavily in your favor? Do you get out? Do you just wake up and if you feel like getting out that day, you do? Pierre Charlebois, another FX Street blogger, says that we should treat trading like a business and has written a fascinating article about it. Click here to read it.

And, as we always promote, we want everyone to have a nice, extended weekend for those of us in the United States. Take this extra time to spend with your family and loved ones.

Good luck and we’ll see everyone next week.

Hello everyone.

Here is a great set up in the EUR/USD in the hourly chart.

We know from our study of Elliott Wave, Wave 3 of an Impulse must be an impulsive. If you look at the larger wave, you see that we started in early August and completed Wave 1 and 2 and am now headed down into Wave 3. A study of Wave 3 shows that we have an impulsive move.

This goes nice with our longer term weekly EUR/USD forecast we put out about a week ago.

Good luck with your trading and we’ll see everyone again shortly.

Hello Vytas.

Thanks for the question. I misread your question when doing a screen capture of the chart but since I did it, I’m going to upload it just for added visual.

Since we’ve drawn the trend lines and have done the analysis on the daily charts, we would want to enter the trade off of the daily charts.

We actually had a perfect example of how it the pair "wicked" below the line but did not close below the line - therefore not entering the market in a short. A lot of times you’ll also see the close right on (or just below) the line. If that happens, we wait to pull the trigger as well.

If you’re already in the trade, like we are, then just continue to watch this. Review the economic calendar for any news/announcements that may effect this pair.

Good luck and if we don’t post again, then we hope everyone has a wonderful and relaxing weekend.

Hello everyone.

We had a comment by St_Fx asking about a EUR/USD or GBP/USD analysis.

First off, I appreciate the comment and correspondance and I have attached a long term analysis for the EUR/USD.

Taking a weekly chart, I have the EUR/USD (in the longer term) coming down to the 1.3500 - 1.3000 area.

Although it’s not shown in the chart, we’ve went back to the start of the bull trend in 2002 and have seen a good movement up from then. Our analysis shows that this wave has topped out with the recent highs and we’ll see a retracement.

Keep in mind, this is a longer term forecast so be sure to analyze the time frame you trade in. I will do a little more analysis on this and will be able to come up with my exact price (to the pip) my forecast says the pair will hit.

Until then, happy trading and we’ll see everyone again shortly.

Hello.

Wanted to post an update on a trade we posted earlier this week.

If it breaks the line on the chart, then look for a sell. By "break" - I mean the candle closes below the line. Sometimes it’ll just wick under the line but be patient and wait for it to close.

Good luck.

Hello Everyone!

First off, I want to thank everyone that expressed their love and support of my daughter. She is truly a gift.

It’s good to be back and I wanted to take a look at the GBP/JPY daily chart. For those of you that trade this pair, you know this is a very fast moving pair and daily movements in this pair can be have some very big moves.

We are in a 3rd wave down of a ZZ. The trend line drawn is a longer term trend line. Look for the pair to potentially move up to to test the trend line, even possibly wicking above the line. Failure to break the line is confirmation of the longer term down trend. If the pair goes above the end of the 2nd wave, then this forecast is invalidated.

During my short summer break, I have been outlaying some good fundamentals for Elliott Wave analysis that I will be sharing with all of you. When you combine Elliott Wave with both technical and fundamental analysis, you’ve got a pretty good combination. Look for that shortly.

Good luck with your trading and we will see everyone again very shortly.

Hello everyone.

First off, I would like to thank everyone for their nice comments and emails regarding the birth of my daughter. As I mentioned in the comments section, it’s truly wonderful to have such a supportive group of people.

I just wanted to inform everyone that I will be taking a short break from posting blogs (and the markets) to spend some time with her. I will be back sometime next week and look forward to continuing what we have started here on FX Street.

For those of you trading this week - I hope you have a profitable week of trading.

Thank you.