This week I’m watching both USD/JPY for possible forex trade ideas and adjustments. Here are the details!
Three guesses why USD/JPY is on my list! I have an open position from last week when I sold the pair at 123.50. I risked 0.50% of my account and placed 100-pip stop loss and profit targets. I used the 1-hour chart where the 100 SMA just crossed below the 200 SMA.
Unfortunately for my trade, the 4-hour chart is showing an equally attractive buy opportunity. The paid bounced just above the 50% Fib, which lines up near the 100 SMA support. Do you think USD/JPY traders are paying more attention to the 4-hour chart than the 1-hour one? Something to think about before I make adjustments to my USD/JPY position.
GBP/USD is also on my watchlist, mainly because we have tons of major U.K. reports scheduled this week that could possibly cause significant volatility among pound pairs. Right now Cable is having trouble breaking above the 1.5650 area, which is near a rising channel resistance on the 1-hour time frame. Not only that, but Stochastic is also showing a sweet overbought signal. Time to sell?
Hopefully I can make decent trades from these setups this week. How about you? Got any trade ideas? 🙂