After my latest adjustment to lock in a profit, Guppy was able to make one small push lower before running into support. Decided to close out the trade for now, so here’s a quick review.
Downtrend Bounce in GBP/JPY
Just a couple of days ago, I decided to close down two thirds of my position manually (135.98) around a strong support level in case there was another bounce. Seller were able to push the pair beyond that support level, but didn’t haven much luck not too much longer later as the previous major swing low area (just above the 135.00 handle) retested yesterday and held.
With the markets in risk-on mode thanks to the improving U.S.-China trade developments and the rising odds of major central bank stimulus ahead, I decided to that this run lower is likely done for now as the Japanese yen could continue to see pressure. Also, with the U.S. on holiday and the NFP report set to rock the markets out into the weekend, I thought it would be a good idea to closed manually (135.67 to solidify gains and avoid event risk.
Total: +93 pips average / +0.67% gain on 1.00% risk
Looking back, I probably shouldn’t have closed two thirds of the position a few days ago since the downside momentum was strong, or I could have at least closed a little bit less like half of my total position. I surely missed out on a bigger gain, but I also felt I could have gotten back in at a better price again on a bounce. And that bounce may come soon with the previous support area bringing in the buyers, so looking forward, I will watch for a retest of the 136.00 – 136.50 area and if the upcoming UK jobs & inflation data support it, I’ll be looking to hop back in short.
That’s it for now but I’m wondering what do you guys think? Did I make the right moves or adjustments? Let me know in the comments section below!
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