Upbeat expectations for the BOE Super Thursday were enough to take GBP/JPY all the way up to my profit target. This was a good short-term play in my book! In case you’re wondering what I’m talking about, make sure you read my initial idea first.
Last week, I decided to follow my gut and hop in a long Guppy position at market for a short-term play riding on the pound’s rallies. This decision paid off early this week when the pair staged an even steeper climb and shot up to the 148.00 handle!
Since it was a short-term setup, I went for a simple 1:1 return-on-risk with a stop roughly equal to twice the pair’s daily range. Not gonna lie… I kind of wished that I had a slightly tighter stop now that I’m seeing that the 1-hour rising trend line is holding, but I think that would’ve made me feel extra jittery while watching my trade.
For now, it looks like the Guppy uptrend is still very much intact and that another pullback to the trend line could be in the works. Of course I’ll be sitting on my hands for the time being since there’s a lot of event risk associated with the BOE Super Thursday, but I’ll keep my one good eye open for any opportunities to get back in a short yen play.
Here’s what I got:
P/L: +245 pips / +0.50%
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
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