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I was already out of my USD/JPY long trade but last week’s hawkish FOMC statement convinced me to jump back in.

If you recall, I recently closed my USD/JPY long trade for +122 pips (+0.15%) in preparation for a possible buy-the-rumor, sell-the-news scenario. See, I thought that Yellen and her gang couldn’t possibly be as hawkish as what market players were already pricing in.

Read: Profit Target Hit On My USD/JPY’s Range Trade!

But it seems like dollar bulls don’t want the party to be over just yet! Though Yellen peppered her statements with warnings over job growth trends and the impact of hurricanes on the economy, market players zeroed in on the Fed’s “dot plot,” which showed that more members now want even more rate hikes than in their previous statement.

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

At the time the dot plot change was enough for me to jump in. It also doesn’t hurt that word around the hood was that Shinzo Abe was about to call for snap elections. And since he has a legit chance of pulling a win and extending his “Abenomics,” yen bears took it as a sign to push the pedal to the metal.

As I mentioned in last week’s tweet, I got in at 112.25 with an aim to take profits somewhere in the 114.00 area.

Here’s the plan:

Bought 0.25% at 112.25, SL adjusted to 111.40, and initial PT maintained at 113.75.

My original stop was at around 110.75 but I’ve already adjusted it to 111.40. I figure that’s already below the rising channel, this week’s bottom ATR, and last week’s low.

Think I should add at retracements or take profits now that USD/JPY is seeing some selling pressure around the top WATR?

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

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