I’ve got the updates on my USD/JPY and GBP/USD forex trade setups this month! Can you guess which pair yielded 300 pips?
Original Trade Idea: Will USD/JPY’s Downtrend Continue?
What a nice trend play! A few weeks earlier I shorted USD/JPY at 114.50 when it looked like the pair was retracing from the start-of-year jitters over China. I had bet on the Fed sounding dovish in its meeting minutes and the markets to continue ignoring the BOJ’s jawboning.
Luckily, the market forces worked out in my trade’s favor. For starters, the Fed DID sound dovish in its minutes, with Yellen and her friends also giving speeches left and right about how they would be waiting for more bullish reports before approving another rate hike. Meanwhile, concerns about oil and Brexit inspired a risk-averse trading environment, enough to eventually drag USD/JPY to my profit targets.
I ended up gaining +300 pips and added a nice +0.30% to my account. Not bad for a couple of days’ worth of trades! I wish I could’ve risked higher though. At least 0.50% per position, maybe?
Original Trade Idea: Another GBP/USD Retracement!
Looks like GU might have found a bottom after all. A couple of weeks back I had contemplated on shorting the pair at a 50% Fib on the 4-hour chart, which lined up with a previous support at the time.
Good thing I waited though! Profit-taking ahead of the NFP report weighed on the dollar across the board and set the stage for a bullish momentum when the NFP numbers came in mixed. It also didn’t help my setup that commodity prices rallied on the days that followed. No trade for me in this case.
That’s it for my trade updates today! I only have my long EUR/USD trade going for me, but I’m open to adding more open trades this week. Got any ideas?