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.
Good luck and good trading!