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May 19, 2009

5/19/09 - 2nd Trade Setup - EUR/JPY

Hello Traders-

Here is another chart setup I have been working on. I have included potential targets, 1 and 2, for profit stops or bid to cover orders after going short.  These are rough estimates, and of course, drilling down for every last pip is not recommended.  We always want to keep in mind that most FOREX professionals cover short and sell longs INTO NEW HIGHS. This is a bit different from most markets, where new highs and lows are usually pilled into.  I think this EUR/JPY setup has just as much potential as the GBP/USD chart, but it really looks as though this channel is forming a nice bearish channel that could continue downward for days or even weeks.  The GBP/USD is a fantastic exhaustion setup, and could very well turn bearish with regard to ascension/descension, but right now the more bearish of the two appears to be this EUR/JPY setup.

Good luck and feel free to ask any questions!

Happy Trading!

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