I was in and out of this USD/JPY trade real quick, and fortunately I was able to score pips! In case you missed my short-term trade idea, don’t forget to read my previous blog post.
I kept this one pretty simple by going long on a pullback to the rising trend line visible on the 1-hour forex chart then aiming for a 1:1 return-on-risk with a 200-pip stop and profit target. I thought I had already missed the chance to catch a decent win on USD/JPY’s uptrend after I closed my swing position too early a few weeks back, but it looks like the scalping gods looked kindly upon me this time.
Economic data from the U.S. was mostly stronger than expected yesterday, although the focus was still on the OPEC meeting and yen weakness was a persistent theme. I’m keeping a bullish bias on this pair since the U.S. remains on track towards hiking interest rates this month, but I’m inclined to wait for yet another pullback to go long at a better price.
For now, here’s what I got:
P/L: 200 pips / +0.47%
The pair climbed more than 50 pips past my PT and I couldn’t help but wish that I caught a few more pips on this one, but a win is a win! Besides, I think I was able to get in at a pretty good price right on the test of the trend line and this week’s lows.
As always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.
These are some of our favorite trading books, and BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!