After days of waiting, USD/JPY finally dropped back down to its previous lows and hit my profit target 175 pips from my entry. Woot!
If you’ve also kept up with my GBP/USD trade, then you’ll know that I’m firmly on the dollar camp these days.
And why not? Concerns over the impact of the Fed’s tightening on the markets; Uncle Sam’s twin deficits, and Trump’s tough stance on global trade issues are keeping traders from buying the Greenback these days.
Two weeks ago a short trade opportunity opened up when USD/JPY failed to hold on to the 107.50 – 107.75 levels. As you can see in the chart below, it marked the 50% Fib that hung just below the falling trend line on the 1-hour chart.I took advantage and shared with my Twitter friends that I shorted USD/JPY at 107.50 when the pair failed to hit the 109.00 handle that I was initially watching.
Good thing I didn’t wait for the perfect entry! The pair dropped like it was hot and hit 106.50 before it breathed for air. The reprieve didn’t last, however, and so the dollar eventually went back down to its 105.50 lows. I was able to exit at 105.75 earlier this week.
Here’s my takeaway:
+175 pips / +0.50% on 0.50% risk
A pretty good take overall, especially on the back of winning that long GBP/USD trade.
Question is, does the dollar’s selloff still have legs? What do you think? Should we look for more, or start checking out reversal opportunities?
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.