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Sometimes you have to know when to let go. Here’s why I closed my USD/JPY forex trade.

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

Just like in love and in life, it’s better to let go than to force something to go your way. That’s what I’m doing with my USD/JPY this week. I think this is a good idea mainly for four reasons:

1. Upcoming FOMC statement. Will Janet Yellen and her gang pave the way for a September rate hike? Will they communicate “cautious optimism?” Or will they keep depending on future data for direction? The highly-awaited event is only a few trading sessions away and speculations are as wide as the sea of Warriors fans celebrating in the streets. Or at least that’s what Cyclopip tells me.

2. My short-term trade is no longer technically valid. As I mentioned on my Watchlist this week, USD/JPY has a pretty good long setup on the 4-hour time frame. My short setup on the 1-hour chart might withstand it if the falling trend line and 100 SMA had actually held. Since they didn’t, I don’t feel as confident on this trade bias anymore.

3. Upcoming FOMC statement. Yes, I think this warrants repeating.

I closed at 123.40, just 10 pips below my open price. I know it isn’t much but I still feel like it was a good trade decision given that my original trade idea was no longer valid.

How about you? Planning on trading the dollar or yen this week?



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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.