After rolling my stop down to lock in some profits after Theresa May’s speech, Guppy jumped another leg higher to trigger my closing orders. Here’s a quick forex trade review!
During the Wednesday afternoon U.S. trading session, we saw a strong short-term move in the currency after Fed Chair Janet Yellen gave a speech that traders took as a positive sign that we’ll get the next FOMC rate hike by the end of the quarter. This lifted USD/JPY, which seems to have put pressure on the Japanese yen and pushed yen pairs higher and higher into the Asia trading session. GBP/JPY certainly participated in the move higher, enough to trigger my adjusted stop at 140.30 to close my short position out for a very small profit.
Total: +100 pips / +0.125% on 0.50% risk
It looks like the idea of rolling my stop down was vindicated as Guppy now trades higher, even above my entry price, but in hind sight, I think the better move would have been to roll down the stop lower before the speech. I knew it was going to be a volatile event so I thought leaving room to breath was a good idea, but I know that “buy-the-rumor, sell-the-news” events occur, so I should have locked in at least 200 or 300 pips to avoid giving back too much because I could have hopped in short again later.
I’m still short Sterling biased longer-term because of the Brexit situation, but I’m going to let this event continue to play out and wait for a return to the downtrend before hopping back in again. Stay tuned!
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