GBP/JPY Trade Adjustment

Forex Trade Adjustment: 2014-04-17

My Guppy trade is playing out much better than I anticipated thanks to positive risk sentiment and a very big, bullish surprise from the U.K. unemployment data. After a 200 pip rise higher, I had to adjust to lock in profits.

Original Trade Idea: Rising Trendline Play on Guppy

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

I’m not going to make the same mistake as I did last time with my EUR/NZD trade  by not locking in some profits after a big 200 pip run.  And with 172.00 failing to break after the final spike higher, it looks like the move is out of steam and may pull back on profit taking by short-term forex traders.

With a holiday weekend coming up, I don’t expect much more big volatility events, so I think if it does pull back, it could be limited to 171.00.  A break below that might mean something new is a miss, so I adjusted my full position stop to 170.50 to lock in a very small profit and create a virtually risk-free trade. 

For now, my next two moves in mind are to add on a retest and hold of the 171.00 area, or to trail my stop and add on a solid break of 173.00.  I don’t see a catalyst to take me up there as quick as what we saw this week, so it may be a grind in this area for now.  Stay tuned!