Forex Update: GBP/JPY Adjustments

Since my last GBP/JPY adjustment posted on my Twitter and Facebook pages on Jan. 27, I’ve added back another long half position at 176.50 on the dip.  With the market spiking higher, I’ve adjusted once again as the picture starts to change.

Original Trade Idea: Scaling Into a GBP/JPY Pullback

GBP/JPY 4 Hour Forex Chart

GBP/JPY 4 Hour Forex Chart

Quick recap: Bought half positions at 180.70 and 176.50, but sold back the lower entry position at 178.62 to lock in profits and added another buy half position at 176.50. Entered half position number 3 on another dip to 176.50, and thanks to positive risk sentiment (climbing oil and less Greek worries pushing forex traders out of safe havens like the yen), guppy is back on the upswing.

I actually thought the chart was starting to look like a descending triangle was starting to form, so I sold back my third half position at 177.52. Unfortunately, I got out slightly early as guppy just made another pop higher to retest 178.00 in the last hour.

So, right now I’m only left with my half position opened at 180.70, after closing down two half positions with 212 pips and the other with 102 pips profit. With the profits I’ve locked in, I’ve reduced my cost basis to 177.56 on a half position trade, and my max loss is now only 0.38%.  With a lower cost basis and plenty of room to breath (174.00 is still my max stop), I’ll hold onto this trade for a while, collect some positive carry and see if this recent shift to risk-on will carry guppy higher.

No additional orders to add positions for today, but I’ll definitely be on the look out for new opportunities to get bigger if the trade goes my way higher. Stay tuned!