Short on USD/JPY

I have decided to increase my positions as only a few weeks are left before the debt ceiling deadline. My strategy was to go short on USD/JPY when the pair retests the rising trend line. My sell order is placed at 99.50 with a stop loss at 150 pips away. The stop loss is positioned just over the channel. My initial profit taking area would be 98.00. I plan to trail my stop manually.

If everything goes accordingly and the pair goes past the channel, I may add some more positions till the debates are over. Nevertheless, if the BOJ acts strong or if the debt ceiling matter does not come out as Dollar bearish, I will cut my losses immediately and may reverse my position too. I know that my analysis is not perfect and the market acts on its own. Therefore, I am preparing myself for both types of scenarios.

On another chart, I have noticed a bullish divergence in the 1 hour chart of NZD/USD. Stochastic was making lower lows, while price made some higher highs, which indicate that the uptrend will continue most likely. However, the pair can test the 61.8 percent Fib level and the rising trend at 0.8300. If I make a trade on this pair, my stop loss will be placed below this area. I am planning to buy NZD/USD at .8400. My profit target is at 0.8600, while I will put my stop loss at 0.8280.

Potential Forex Trades http://www.topfxandbinary.com/potential-forex-trades/

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