Forex Trade Review: GBP/JPY Long

Ahead of the weekend, I decided to close out my remaining Guppy position to lock in profits.  Here’s a quick forex trade review.

Original Trade Idea: Scaling Into a GBP/JPY Pullback
Last Adjustment: Forex Update: GBP/JPY Adjustments

GBP/JPY 4 Hour Forex Chart

GBP/JPY 4 Hour Forex Chart

Since my last trade adjustments, I thought the final spike higher going into the weekend was an opportunity to lock in profit and close trade ahead of what could be a very bad week for the euro and risk-on sentiment in general. The Greece’s bailout story continues to be a fluid one, and looks more and more like a risk with the EU warning that time is running out to avoid a financing crisis in Greece.  Euro zone finance ministers will meet Feb. 11, where Greece will present a comprehensive proposal for an extension, and I think this is a risk event I don’t think I want to have risk-on positions for going into.

So, as I announced on Twitter and Facebook, I closed my final long GBP/JPY half position at 181.36, ahead of the U.S. session Friday close. Here’s how all of my half position trades fared:

1st half: +66 pips
2nd half: +212 pips
3rd half: +102 pips
Total: +0.41% gain

Not a big gain on a month long trade, but I used small positions and Guppy pretty much stay in a tight range so I didn’t have much to work with. Overall, still a good trade and I don’t regret taking off my 3rd half position because it really did look like we were about to go in risk-off sentiment mode before the positive U.S. jobs number gave risk sentiment a boost to the upside.

I may hop in long another Guppy position on a pullback, but I’ll wait until we see whether or not Greece is able to lock in more cash and avoid a Euro area crisis. Stay tuned!