USD/JPY: I Bought! – Trade Closed

Trade Update: 2011-3-13 21:50

USD/JPY Daily Chart

Ya’ll probably have heard the news by now. An earthquake near the eastern coast of Japan triggered a major tsunami and caused a lot of destruction.

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.

I’m a bit bummed out that I didn’t take profit on my second position when I had the chance. But at least I was able to end my trade with a win, right?

First position hit first pt at 83.00: +110 pips
Second position stopped out at breakeven (81.90): +0 pips
Total Gain: +110 pips / +0.65%

Trade Update: 2011-3-7 2:41

USD/JPY Daily Chart

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.

Fingers crossed!

Trade Idea: 2011-3-1 1:41

USD/JPY Daily Chart

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!

  • jibby03

    also took this trade for the same reason, although you did get in lower than i did by about 25 pips…..fingers are crossed

  • jibby03

    also took this trade for the same reason, although you did get in lower than i did by about 25 pips…..fingers are crossed

  • windyking

    Your PT 1 hit today.

  • windyking

    Your PT 1 hit today.

  • ninjaman007

    earth quake in japan today, will it makes USD/JPY up or down?

  • ninjaman007

    earth quake in japan today, will it makes USD/JPY up or down?

  • Huck

    @ninjaman 007

    I thought it would make USD/JPY go up but… It seems that traders believe that the earthquake will cause money to flow in to Japan. It also caused quite a bit of risk aversion.

    I was able to hit my first profit target and come out with a profit though… As for my second position, it stopped out at breakeven, sadly.

  • Huck

    @ninjaman 007

    I thought it would make USD/JPY go up but… It seems that traders believe that the earthquake will cause money to flow in to Japan. It also caused quite a bit of risk aversion.

    I was able to hit my first profit target and come out with a profit though… As for my second position, it stopped out at breakeven, sadly.

  • Buckscoder

    Mihihi. Back from vacation and Huck is still struggling with weather prediction of fincancial markets. U still try to beat the smart guys with an idea like 1+1 = 2? 1 + 1 = 11 and not 2 in financial markets.

    EQ means destruction and destruction means money for the economy, because what was destructed must be rebuild. Then money for economy means a better economy in the future. What is traded today ist the future, because there is no present present. That way around it goes. ;)

    Anyways, best luck for your coming trades. :)

  • Buckscoder

    Mihihi. Back from vacation and Huck is still struggling with weather prediction of fincancial markets. U still try to beat the smart guys with an idea like 1+1 = 2? 1 + 1 = 11 and not 2 in financial markets.

    EQ means destruction and destruction means money for the economy, because what was destructed must be rebuild. Then money for economy means a better economy in the future. What is traded today ist the future, because there is no present present. That way around it goes. ;)

    Anyways, best luck for your coming trades. :)

  • thomtyro

    After the earthquake i’m staying away from this pair… The hedge demand pushed it up to 80.72, but forex price rebounded from the low point and had broken through 82.00, touching the high of 82.43. I am waiting for the measures to keep markets quiet launched by the Japanese authorities. You know that natural disasters drive funds remitted back to Japan, the Japanese Yen has soared since last Friday. So i will be waiting for now ;)

  • thomtyro

    After the earthquake i’m staying away from this pair… The hedge demand pushed it up to 80.72, but forex price rebounded from the low point and had broken through 82.00, touching the high of 82.43. I am waiting for the measures to keep markets quiet launched by the Japanese authorities. You know that natural disasters drive funds remitted back to Japan, the Japanese Yen has soared since last Friday. So i will be waiting for now ;)