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So close! USD/JPY has been flirting with the 100.00 profit target all week and I’m not sure if I should wait for the pair to hit the psychological area. What do you think?

Original Trade Idea: Make or Break for USD/JPY

Entry Update: Make or Break for USD/JPY

Looks like I’m on the right side of the trade on this particular setup! As I’ve mentioned a few days ago, I jumped in on USD/JPY’s downtrend after spotting a cool Fib opportunity on the daily chart.

USD/JPY: Daily Forex Chart
USD/JPY: Daily Forex Chart

Gotta admit, it wasn’t easy holding on to the positions especially in the days leading up to the BOJ’s decision. I mean, have you seen the crazy spikes all due to speculations? Luckily, Dr. Pipslow’s piece on mixing up time frame analyses reminded me that what is catalyst for short-term traders could just be noise to long-term trades like this one.

Lo and behold, the BOJ DID disappoint market players. Instead of pulling a Bernanke and using Helicopter Money, it only upped its ETF purchases and created a program for dollar-denominated lending. This resulted in a bloody day for USD/JPY where it fell from 106.00 to the 102.50 area.

Fast forward to today and now I’ve moved my stop loss to 103.00, locking in +106 pips for the first position and +300 pips for the second one. That’s about +0.40% of my account from an initial risk of 0.50%!

Right now I’m considering the possibility of USD/JPY reaching the 100.00 mark. Abe has already announced his (underwhelming) stimulus plan and not even this week’s risk aversion was enough to drag the pair lower.

Should I wait for the pair to drop to the level or should I take profits now? Any advice would be very much appreciated!

XOXO,

Huck

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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.