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Clearing the cobwebs off my trading journal before the year ends! First up is a trade review of my first (out of two) long USD/JPY trades in Q4 2014. Here are the details!

Original Forex Trade Idea: Another USD/JPY Uptrend in the Works?

As I mentioned in my initial trade idea, I bought the pair at a market when it made a break above the 108.00 technical resistance. A bigger factor though was the crossover between the 100 and 200 SMAs. If you recall, crossovers on the 1-hour chart have been reliable for the pair for the past couple of months.

USD/JPY 1-Hour Forex Chart

I was confident in my fundamental bias so my strategy was to simply place buy orders worth 0.5% of my account every 150 pips and manually adjust my stops whenever the pair makes new significant highs. This time the pair triggered a total of 5 positions before a slight weakness in the U.S. NFP report inspired profit-taking and hit my manually adjusted stops at 114.00. Here’s a summary:

Position 1 bought at 108.12: +588 pips
Position 2 bought at 109.62: +438 pips
Position 3 bought at 111.12: +288 pips
Position 4 bought at 112.62: +138 pips
Position 5 bought at 114.12: -12 pips
TOTAL: 1,440 pips, +4.51%

Is that sweet or what?! All hail the SMA gods!

Although I’m pretty bummed that I would not have been stopped out had I not manually moved my stop, I still believe that it was a good idea at the time to manually adjust stops, especially since the pair was having trouble sustaining its upward momentum. Besides, I managed to enter the trend again, this time as another trade idea. But more on that later.

What about you? Did you manage to catch any of USD/JPY’s uptrend this year? Let me know! 🙂



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