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Looks like the dollar bulls aren’t out of tricks yet!

Last week I mentioned that I risked 0.50% of my account selling USD/JPY because the weak U.S. Treasury yields performance had been weighing on the Greenback and a bit of risk aversion had been pushing the yen higher.

Trade Update: Falling Channel Trade on USD/JPY
Trade Idea: Falling Channel Trade on USD/JPY

USD/JPY 4-Hour Forex Chart
USD/JPY 4-Hour Forex Chart

I guess I held on to my trade too long. In hindsight I should have closed my swing trade when I saw that the dollar isn’t as weak as I thought it would be. Not only that, but USD/JPY had also found support at the 101.50 minor psychoogical level, enough to drag Stochastic to the oversold area. Last but definitely not the least, I probably should have considered that traders would take profits at the end of the month.

I ended up manually closing my trade as soon as I saw that USD/JPY was threatening to break above the falling channel that I spotted at the start of the week. I decided on taking a small hit (a 0.23% loss) rather than waiting for price to come back down.

It’s a good thing I did! USD/JPY soon reached my 102.25 stop loss and even broke above 102.50 this week. Phew! It’s like ending a toxic relationship!

Now on to the next good setup. Have you spotted any good ones on the majors? Don’t hesitate to share!



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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.