Forex Trade Review: EUR/JPY Descending Channel

Touchdown! Just a few hours after I posted my EUR/JPY trade update, risk aversion came charging across the forex field, pushing price to the end zone at the descending channel support. If you haven’t yet, make sure you take a look at my initial trade idea right here.

As you can see from the 4-hour forex chart below, I was able to hop in a short trade around 130.70 just after the BOJ statement last week. Price spiked a little bit higher to a much better entry level at the very top of the descending channel before eventually giving in safe-haven flows.

EUR/JPY 4-hour Forex ChartEUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Even though I’m feeling pretty stoked about this 395-pip win or 0.55% gain on my account, I still can’t help but wish that I had been a little more patient in waiting to short around 132.00 for a much better R:R. With this one, I was able to make just a tad over 1:1 return-on-risk with my stop above 134.00, and I know I could’ve also improved this metric by adding to my position at the channel resistance.

But, as they say, hindsight is 20/20 and in this particular case, it was tough to tell whether the top of the channel would hold or not since the BOJ just recently implemented negative deposit rates. Heck, there’s even talk of currency intervention by Japanese officials these days so I’m thanking my lucky stars that my PT was hit.

Here’s what I got:

P/L: 395 pips / +0.55%

I hope y’all had a profitable trading week so far and I’ll see ya on the other side of the weekend!

 

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