As I mentioned on my Twitter update yesterday, I finally pulled a trigger on this setup:
With London and U.S. traders back from the holidays yesterday, I wasn’t surprised to see a burst of volatility at the beginning of the London session. And since not much has changed from last week’s economic themes, I entered at market as soon as a bearish candle ended a small consolidation on the 4-hour chart. It also didn’t hurt that the yen was gaining across the board and Stochastic had just left the overbought area at the time.
I entered 0.50% of my account at market (101.75) and placed a 50-pip stop loss. I figured my falling channel trade idea would be invalidated at around 102.25. I’m looking for a drop to 100.00 but for now my PT is placed at 100.80.
Unfortunately, it looks like the initial burst of volatility was just that – a burst. The yen didn’t gain momentum for the rest of the day and USD/JPY even popped to 102.15 yesterday. Yikes!
For now I’ll hold on to my position, at least until the pair closes above 102.00, the falling channel, or the 200 SMA. I hope the dollar bulls step in real soon!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.