Closed Open Orders: 2010-11-05 00:07

Oh, what a bummer. AUD/JPY just left poor little Happy Pip behind! The pair didn't even need support from the bottom of the channel to push it higher. It did zoom all the way up to 82.00, which is my first profit target. Should I have just entered at market?

I'm patting myself on the back and treating myself to a nice chocolate cupcake for staying disciplined and sticking to my trade plan, which says that I should be patient and wait for the price to hit my entry. The trade idea was a pretty good one, but I just missed the boat. Since there's no more catalyst for the AUD later on, I'm canceling my open orders ahead of the U.S. non-farm payrolls report.

Trade Idea: 2010-11-04 3:15

Do you know what's looking sweeter than a freshly-baked chocolate pecan pie? It's the rising channel in AUD/JPY!

Oh yes, I'm thinking of tagging along the pair's recent uptrend especially when I think that the reports coming up this week are about to push the pair higher.

First, the Reserve Bank of Australia will release its monetary policy meeting minutes in a couple of hours. I think this will be bullish for the Aussie since the RBA surprisingly hiked its interest rates early this week.

Then, the Bank of Japan will also take center stage a few hours after the RBA when it releases its own monetary policy statement. I'm leaning towards a dovish stance from the BOJ after Forex Gump wrote about the BOJ's increase in asset purchases.

Of course, I wouldn't want to forget the yummy-looking setup in the 1-hour chart! Aside from lounging at the bottom of the channel, I also spied the pair encountering support at the 50% Fib. Stochastic isn't helping me much though, as it's on the middle ground. But oh well, I'm gonna place my orders anyway. I gotta risk it to get that warm buttery biscuit!

I decided to place my entry orders at 81.00 and at the previous day's high at 81.25, and put my tight stop loss at 80.50. I plan on taking profits at 82.00, which is right below the ATR top.

Again, here are the trade details:

Long AUD/JPY at 81.25, pt1 at 82.00, pt2 at 83.00, stop loss at 80.50. I'll be risking 1% of my account on this day trade and I plan to move my stop to entry once my first target gets hit.

This should give me a nice risk-reward on both positions, right? Well, wish me luck on this one!