Trade Update: 2011-3-13 21:50
Being the noob that I am, I thought this unfortunate calamity would be bearish for the yen, so I held on to my trade. USD/JPY spiked up initially and then, sha-bam! The pair quickly reversed its course. You can just imagine how baffled I was!
Apparently, news that Japanese firms will send back money from overseas to meet Japan’s cash needs fueled the yen’s rally.
Trade Update: 2011-3-7 2:41
USD/JPY spiked when the NFP report was released on Friday. Although it seems like the employment figures didn’t impress markets enough for the dollar to hold on to its gains, it sure was good enough for my first profit target to get triggered!
My old man once told me to aim high and hit the mark so I’m keeping my trade open until it reaches my second profit target which is the 84.00 handle. Our super awesome economic calendar indicates that high-caliber reports from the U.S. won’t start coming in until Thursday. So I’m looking at the political unrest in Japan to continue and fuel the pair’s upward rally.
Trade Idea: 2011-3-1 1:41
Alright, here it is folks! In one of my previous posts, I promised that I would go long USD/JPY in the event that the rising trend line on the daily chart holds and a reversal or an indecision candlestick pattern appears.
Just look at yesterday’s candle which closed as a spinning top… Ain’t it sexy? That’s what I thought so too! So, as soon as I saw that Stochastic lines went inside the oversold area, I immediately pulled the trigger.
My ultimate target is 84.00, but I’ll be taking profit at 83.00. As for my stop, I placed it slightly above the 81.00 psychological handle. I’m thinking that when the pair reaches this level my trade idea would have already been invalidated.
If prices moves strongly in my direction, I may add to my trade. This trade sets me up for almost a 2:1 reward-to-risk ratio at the very least.
I’m very optimistic on this trade because there are a lot of important economic reports in the U.S. that have very positive forecasts.
First, the ISM manufacturing PMI scheduled to be released later is predicted to rise to 60.9 from 60.8. Second, initial jobless claims report on Thursday is anticipated to decrease by 1,000. Last, the super duper important non-farm payrolls report is predicted to show that 176,000 net jobs were added, almost five times the number we saw in February.
Here’s a quick recap of my game plan:
Entered at market (81.90), pt1 at 83.00, pt2 at 84.00, stop loss at 81.05, and risking 1% of my account.
By the way, I’m also starting to get more active in Twitter, so please follow me! Like in trading, I am also a noob there, but I am getting the hang of it. After all, it’s just a matter of telling the world what I’m currently doing. Not that hard!