Profit target hit! It’s been a while since my USD/JPY short hit its profit target, but I thought I’d let you guys know exactly how the forex trade went down.
Original Trade Idea: Make or Break for USD/JPY
Trade Update (Entry): Make or Break for USD/JPY
Trade Update (Trailing stop): Make or Break for USD/JPY
As you can see from the links above, I shorted USD/JPY a couple of weeks back in anticipation of further easing from the BOJ as well as Shinzo Abe’s much-awaited economic stimulus package. See, I thought that the next batch of stimulus was waaaaay too hyped already and that the odds of the actual stimulus size disappointing market expectations was high.
Lo and behold, the BOJ AND Shinzo Abe did end up underwhelming the markets! Though Kuroda and his team stepped up their stimulus efforts, they didn’t touch the asset-buying part of their policies and didn’t take the “helicopter money” route. Even Kuroda’s fiscal stimulus plans could’ve boosted USD/JPY if market bees hadn’t already buzzed (and priced in) the size of the plan.
On a technical basis, I took advantage of a falling trend line on the daily chart that hadn’t been broken since the start of the year. It also didn’t hurt that the 100 SMA was just above the resistance area.
I risked a total of 0.50% of my account at 104.00 and 106.00 and targeted the 100.00 major psychological handle. After days of crossing my fingers and second and third-guessing the decision to WAIT for the 100.00 mark, the pair finally hit the profit target. WOOT! WOOT!
Here’s a summary for ya:
Position 1 (0.25%): Entry at 104.00, PT at 100.00
Position 2 (0.25%): Entry at 106.00, PT at 100.00
Total: +1,000 pips/ +0.94%
All in all I’m pretty happy with how this trade turned out (who wouldn’t?). It was the kind of trend trade that would’ve stung if you missed it. Not only that, but it also helped me flex my trading discipline muscles again. I can only hope to find more setups like these for the rest of the year!
How about you? Got any setups that you’re looking at this week? Feel free to share!