Pick of the Day: USD/JPY -Trade Closed
Trade Closed: 2007-08-16 09:25
Our trade reached full profitability as Yen strengthens on further carry trade unwinds.
The Yen rallies 200 points during the European trading session before retracing to its current level around 114.41. This rally triggered our entry orders to go short at 115.50, and easily hits both of our profit targets at 115.15 and 114.70. I hope everyone did well!
1st half: +35 pips
2nd half: +80 pips
Total: +115 pips
Trade Idea: 2007-08-16 00:31
The subprime fallout in the US has led to risk aversion and strong trends in Yen buying through carry trade unwinds. We could see more to come, especially with US housing data to be released later today.
On the chart, we can clearly see the downtrend, and by using the Fibonacci extension tool we can see the pair has found short term support at the 100% Fib extension level. We will look to short the pair below the previous 4hr bar low to jump in the downtrend.
Short USD/JPY at 115.50, stop at 116.20, pt1 at 115.15, pt2 at 114.70
Please remember to risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!
Related Posts:
- Pick of the Day: USD/CHF - Trade Closed 09:30 13 August 2007
- Pick of the Day: USD/CHF - Trade Closed 12:10 13 November 2007
- Pick of the Day: EUR/JPY - Trade Closed 17:25 22 February 2007
- Pick of the Day: USD/CHF - Trade Closed 13:54 28 December 2007
- Pick of the Day: USD/CAD - Trade Closed 14:00 13 February 2007
Comments (5)
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Forex Blog: Pick of the Day
I like this trade even though those take profit levels seem small for my taste. Ideally I would of put a short in July at 121.95 or waited for the bounce back to .382 in august at 119.70. I think there is still time for a good short position trade on this pair. However, I have too much margin used up and I won't be taking it, Ill leave it to you guys ;)
its seems that this plan is succesful,i madew the first target,and i'm waiting for the second.
This is the third demo account I'm running. Thanks to you I nearly sort of know what I'm doing. Still having major problems working out Fibonaccithingy though.
I'll have to go through the article on this site again.
Cheers! My demo account is making a steady profit for the first time! Yay!
Pick of the Day said:
"Please remember to risk more than 1% of your account on any single trade. Adjust position sizes accordingly."
That's fine for me. I like the risk of Forex!!! ;)
Yet another great pick. Thanks.