Forex Adjustment: Close GBP/JPY Orders

Guppy volatility picked up after today’s unexpected announcement from the Bank of Japan, but unfortunately, it wasn’t enough to trigger my short forex orders before the pair fell on the session.

GBP/JPY Short

Original Trade Idea: Forex: CAD/JPY Short Update & New GBP/JPY Short

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Today, the Bank of Japan surprised forex traders with relatively small adjustments to its quantitative easing operations. Basically, they’ve decided to extend the average maturity of Japanese government bonds and start buying ¥300MB of exchange-traded funds that track the JPX-Nikkei Index 400 to support Japan’s sluggish economy.

The initial reaction was a swift Japanese yen selloff, but unfortunately for my trade, it wasn’t enough to trigger my orders at 184.00. In fact, it got to about 183.90 before the buyers ran out of steam and sellers hopped in to take the pair a big 300 pips lower on the session.  With the weekend quickly coming up and the market already at my target level of 181.00, I’ve decided to close my short orders at 184.00. No trade. 

So, I missed a fast 300 pip move because I missed my entry by 10 pips….not gonna lie and say that didn’t sting a little.  But that’s part of the game and it’s a constant process of adjustment and tweaking to get certain techniques, like our entries and exits, to where we want it. Overall, it was a solid setup that just didn’t go my way today, but I’ll continue to watch this pair with the markets in risk aversion mode. Stay tuned and have a great weekend!