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Is it me, or is the 111.50 resistance getting too hot to handle for the bulls?

A few days ago I risked 0.25% on a potential long-term range bounce. However, I also kept close tabs on the 111.50 handle, which lines up with a falling trend line (and mid-range) resistance as well as the SMAs and area of interest on USD/JPY’s daily chart.

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

Well, it looks like other traders are also paying attention! As you can see, USD/JPY is having trouble breaking above the level.

And since the Fed is about to publish its much-awaited (and maybe priced in?) decision tomorrow and stochastic already hanging out in overbought territory, I decided to keep my initial profit target around the trend line resistance. I figure now’s a good time as any to bail out of the long trade.

Here’s what happened:

Closed at 111.75 for a net of +122 pips (+0.15%).

Overall, not a bad position for a few days’ worth of vigilance. Over the next few days I’ll look out for possible ways to trade the dollar again. EUR/USD’s support-turned-resistance scenario is looking particularly attractive to me. Think I should jump in?

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

See also:
My Q4 2016 Forex Trade Review and Reflections
HLHB System’s 2016 Performance Summary

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.