Forex Trade Review on EUR/JPY & Updates

With big moves thanks to the BOJ and the weekend approaching, it was time to do a quick review and update on my trades.

Short EUR/JPY

Original Trade Idea: Short EUR/JPY on a Pullback?

EUR/JPY 4 Hour Forex Chart

EUR/JPY 4 Hour Forex Chart

There’s not much to say here other than, “thanks Bank of Japan!” Much, much earlier than was anticipated, the BOJ decides to increase the monetary policy stimulus to 80 trillion Japanese yen annually (up from the 60 – 70 trillion Japanese yen range previous) to help boost the economy, fight declining inflation conditions, and prepare for another potential sales tax hike in 2015.  From that point on, it was all about yen selling from forex traders, pushing most yen crosses to around a 2.00% change on the day or more–many times more than the average daily change in value.  For my EUR/JPY short, that meant a quick move up to my second short entry at 138.50, and inevitably, my stop loss level at 139.70 to close my position out for a small loss.

Total: -200 pips/ -1.00% loss

The only thing I probably could have done better was to pay more attention to the BOJ.  Their monetary policy decisions have been snoozers for quite a while, so I thought there was a low probability of big volatility.  And with having stops on, I felt comfortable leaving my trade and orders working, as usual with recent monetary policy decisions from the BOJ. But this is the one time they surprise, I wasn’t on the ball and so I’ll have to take a small hit to the account.  Besides that, the setup was fine and I’ll continue to take it in the future.

Short EUR/AUD & GBP/CAD Open Trades

Losses are always painful lessons, but on the bright side, I’ve got two other trades working  (my short positions on EUR/AUD and GBP/CAD) that are both profitable at the moment, and I think have a good chance of staying that way if we continue to shift into a risk-on environment thanks to free money from central banks still coming in.

That’s it for now.  Thanks for checking out my blog and have a great weekend!

 

  • Ady

    So you were buying yen against the euro, the boj statement comes out and you just watch it zip 120 pips in the wrong direction? :/ wow lol

    • Cyclopip

      I didn’t watch it Ady…I slept through it! haha. The only time I’m not in front of the markets is the 4 – 6 hours a night when I sleep. And with this being a longer term trade and a wide stop, I’m just going through my normal process. It was a rare occurrence and definitely a big surprise, but didn’t hurt me one bit.

  • Ady

    It was a surprise right enough! Never knew monsters slept! :/

    • Cyclopip

      Yup, forex is so tiring that it can even knock a monster out! 🙂 Hope all is well with your trading Ady and thanks for checking out my blog!

  • Cyclopip

    You’re welcome Spamwich. Yup, I don’t mind sharing my mistakes and losses. They’re a part of trading and hopefully my failures will help teach myself and others what not to do with all of the different market situations 😀