EUR/JPY: Loading Up at 119.00 – Profits Bagged!

Trade Closed: 2013-04-04 21:30

EUR/JPY 1-hour Chart

Winner, winner, bunny ears for dinner!

Mr. Kuroda shocked the markets yesterday when he basically announced that the Bank of Japan will be re-hauling its stance on monetary policy. The BOJ will now be purchasing bonds of maturities up to 40 years, as well as make monthly asset purchases of 7 trillion JPY, which is double it’s previous allowance of 3.4 billion JPY.

This sent yen pairs zooming up the charts, allowing me to make mad pips on my EUR/JPY position! Boomshakala my brothers!

Once I saw all this happening, I made a decision to let some of my position run so that I could capture some extra pips.

I decided to close half my position at my original take profit point of 121.50 (I eventually closed that at 122.42). I let the second half run a bit, while manually moving my stop along the way. I closed the second half at 122.09, as I felt that there would be too much event risk with the ECB rate statement coming up.

Overall, here’s what happened:

1st half closed at 121.42: +222 pips
2nd half closed at 122.09: +289 pips
Average close at 122.71: +255.5 pips / +1.60%

While I didn’t catch the full move, I’m pretty satisfied with how this trade turned out. A return of 1.60% basically gave me a reward-to-risk ratio of 3:1 on the trade. Not bad at all! I’m also happy that I was willing to take the risk of leaving my position open ahead of the BOJ statement. I really had a strong feeling that Kuroda would come up with some big plans. After all, that’s why Prime Minister Abe selected him as his nominee to head the BOJ!

I’m also happy that I was able to recognize that the move was strong and that I had enough courage to let some of my position run. I probably could have made a little more on that second position, but at the very least this is one step closer towards adding another skill to my trading tool box.

I hope y’all were as lucky as I was to catch this move! Have a great weekend, my forex friends!

Trade idea: 2013-04-02 03:40

EUR/JPY 4-hour Chart

My, my, my, look what we have here… When I spotted this setup, I had to double check my calendar to make sure it wasn’t April 1st anymore and that my eye wasn’t playing tricks on me!

We’ve got a major confluence zone at the 119.00 handle, fellas! The 119.00 major psychological handle and bottom WATR line up closely in an area that has acted as a solid support level in the past. Check out how it kept EUR/JPY from falling back in February!

Methinks this level could act as a major turning point again, so I set up my trade this way:

Buy EUR/JPY at 119.20, stop loss at 118.40, profit target at 121.50.

If all goes according to plan, I should take home an almost 3:1 winner, which should give me a pretty penny on the 0.50% than I’m risking on this trade.

What I like about this trade is that goes with my fundamental bias for the yen. I think the Japanese currency could see huge losses this week, as newly appointed BOJ Governor Kuroda is expected to announce some hardcore easing measures in the BOJ statement on Thursday. If he does deliver, I would expect to see EUR/JPY skyrocket!

What do you guys think? Is this something you would trade? Hit me up with your comments and suggestions below!

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  • piptrader

    what about the double top formation on the daily chart?? it may observe a drop to the neckline..but SL seem to be the answer to that..m on this trade with 0.5%

  • Jolcia

    are u still holding on to this one?

    • cyclopip

      Yup I held on to this one! Luckily for me, the markets have responded to the BOJ statement by shorting the yen!

  • piptrader

    yuppieee…..dint expect to get it so early though.. 😉

  • Saito072

    WOW, 500 pips and counting, Congrat Cyclopip, should have listen to you :)), – from your latest fan –

  • jymarc

    Classic and excellent. Thanks