Adjusting my entry strategy on EUR/JPY after my short orders were narrowly missed before sellers took back control.
Resistance Play on EUR/JPY?
After dropping my short idea on EUR/JPY yesterday, forex traders did manage to take the market higher during today’s Asia and London session. Unfortunately, sellers hopped in just enough ahead of my orders at 120.50 that the market turned lower without triggering my short orders.
With my idea still intact, especially with U.S.-China trade developments souring further today (Trump threatens higher tariffs if China doesn’t make a trade deal), I’ve decided to adjust my entry strategy by going in at market now that my thesis of resistance holding has played out. Here’s my new entry and exit plan:
Short half position EUR/JPY at market (120.22), max stop at 121.60, max target at 118.50
Again, I’m only risking 0.50% of my account on this trade and max potential return-on-risk of around 1.24:1. But again, I’ll likely cut out of this trade by next week, all depending what we see from European data, and/or news updates on the U.S.-China trade story.
Of course, if the stars line up for a potential longer-term swing play, then I won’t hesitate to adjust my plan to keep risk low and maximize the profit potential.
What do you guys think? Should I have stayed patient with my entry orders or was hopping in at market the right thing? Let me know in the comments section below!
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