Now that USD/JPY has given my trade some breathing room, I’m going risk-free ahead of the much-awaited NFP report.
Late last week I told you guys how I bought USD/JPY ahead of a GDP report that everyone and their cats expected to print positively. Meanwhile, the 4-hour chart was flashing buy signals that I couldn’t ignore.
Fast forward to today and USD/JPY did see a bounce from the rising channel support and 200 SMA area. And thanks to a combination of hawkish FOMC statement and a disappointing BOJ statement, USD/JPY is now about 100 pips from my entry level.
Since the NFP report is only a few hours away, I’ve decided to limit my risk by moving my stops to break even.
I figure a move back down to my entry would mean that the rising channel and 200 SMA is broken and the dollar would really be on its way down if it had broken these support levels.
Leading indicators are also showing mixed signals this month, so there’s a chance that dollar bulls (or yen bears) might take profits before the week ends.
I’ll be monitoring the event today and look for ways to maximize profits. Maybe adding to my position once USD/JPY makes new highs?
Let me know if you’re in the same trades as I am or if you have plans on trading the NFP release too!
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