So close! USD/JPY has been flirting with the 100.00 profit target all week and I’m not sure if I should wait for the pair to hit the psychological area. What do you think?
Original Trade Idea: Make or Break for USD/JPY
Entry Update: Make or Break for USD/JPY
Looks like I’m on the right side of the trade on this particular setup! As I’ve mentioned a few days ago, I jumped in on USD/JPY’s downtrend after spotting a cool Fib opportunity on the daily chart.
Gotta admit, it wasn’t easy holding on to the positions especially in the days leading up to the BOJ’s decision. I mean, have you seen the crazy spikes all due to speculations? Luckily, Dr. Pipslow’s piece on mixing up time frame analyses reminded me that what is catalyst for short-term traders could just be noise to long-term trades like this one.
Lo and behold, the BOJ DID disappoint market players. Instead of pulling a Bernanke and using Helicopter Money, it only upped its ETF purchases and created a program for dollar-denominated lending. This resulted in a bloody day for USD/JPY where it fell from 106.00 to the 102.50 area.
Fast forward to today and now I’ve moved my stop loss to 103.00, locking in +106 pips for the first position and +300 pips for the second one. That’s about +0.40% of my account from an initial risk of 0.50%!
Right now I’m considering the possibility of USD/JPY reaching the 100.00 mark. Abe has already announced his (underwhelming) stimulus plan and not even this week’s risk aversion was enough to drag the pair lower.
Should I wait for the pair to drop to the level or should I take profits now? Any advice would be very much appreciated!