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.
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! 🙂
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.