Analysis of supports and Resistance on June 8, 2007

Hi all... It does not look good for the crosses does it. Only USDJPY seems a bit buoyed due to the fact that the stock market is doing well and also cos the bonds are supporting it as well. The other crosses simply seem to have been beaten to death with GBPJPY suffering a 400 pips loss in 2 days. It has recovered a bit but now i am beginning to feel that it might go down again. USDJPY is usually the catalyst for all the crosses and it is now near a very strong resistance. Either it has to push thru the resistance and carry the other crosses with it or if it is not able to overcome the resistance, it will drag the other crosses down along with it.

So let us wait and watch. The GBPJPY might go down till upto 236.5 (assuming that it will go down) and i dont think it will go down any further than that. So all those who have enough money in their accounts can keep loading it as and when they please.

I suppose that i need not analyse each individual resistance and support at this point cos as you can see below, the supports and resistances have held very well today as well.

What is most attractive about the crosses is their volatility. It can break you or make you. If you can play it carefully and in the direction of the trend, you can indeed make a lot of money in a few months time. All that you need to know are the resistance, supports and money management. All these are very simple to see and learn and if you could do that, there is no way that you can lose money on the crosses.

Those who do not have so much money can go for USDJPY where volatility is low, hence risk is low and of course, the returns will also be low. GBPJPY is the other extreme where risk, volatility and returns are huge but you need lot of money for sustaining the drawdowns and EURJPY is the middle man with a mix of both. So the crosses give u a wide choice and it is upto you to decide on which cross to trade depending on the money that you have and also on your risk appetite.

Happy Trading!!