Looks like the dollar bulls aren’t out of tricks yet!
Last week I mentioned that I risked 0.50% of my account selling USD/JPY because the weak U.S. Treasury yields performance had been weighing on the Greenback and a bit of risk aversion had been pushing the yen higher.
I guess I held on to my trade too long. In hindsight I should have closed my swing trade when I saw that the dollar isn’t as weak as I thought it would be. Not only that, but USD/JPY had also found support at the 101.50 minor psychoogical level, enough to drag Stochastic to the oversold area. Last but definitely not the least, I probably should have considered that traders would take profits at the end of the month.
I ended up manually closing my trade as soon as I saw that USD/JPY was threatening to break above the falling channel that I spotted at the start of the week. I decided on taking a small hit (a 0.23% loss) rather than waiting for price to come back down.
It’s a good thing I did! USD/JPY soon reached my 102.25 stop loss and even broke above 102.50 this week. Phew! It’s like ending a toxic relationship!
Now on to the next good setup. Have you spotted any good ones on the majors? Don’t hesitate to share!