Forex Review: USD/JPY Long

On Monday, I trailed up my stop on my long USD/JPY position to lock in profits ahead of a busy economic calendar. It looks like the Greenback took a step back thanks to the weak U.S. trade balance data and took me out for a small profit. Here’s a quick trade review.

Original Trade Idea: USD/JPY Back to a Major Support Area

USD/JPY 4 Hour Forex Chart

USD/JPY 4 Hour Forex Chart

For a second there, it looked like USD/JPY was set to breakout of consolidation and pull in momentum players to resume the longer-term trend higher. The market got as high as 120.50 before falling on Tuesday, a drop sparked by the weak U.S. trade balance data.  Shortly after the release, my trailed stop at 119.80 was triggered to close out my entire position for a very small profit:

Total: +80 pips on half position/ +0.20% gain

Overall, I’m okay with where I got out of this trade as I already wanted to close ahead of a busy week.  I thought my trail stop adjustment was the right thing to do in case there was a push higher (which there was momentarily), but it just didn’t work out with the top tier events that were coming out. One thing I probably should have done was another trail higher of my stop when the market got up to 120.50.

So, the USD markets are still in consolidation mode, making my search for great trending plays very frustrating.  The Greenback has been on the downslide in recent weeks, I may have to hop on that new trend, of course depending on what we get after this Friday’s Non-farm payrolls data.  Stay tuned!