Aaand I’m out! Since the Greenback is having trouble extending its gains, I’ve decided to take profits and limit my risks ahead of the NFP release.
As we discussed a few days back, I risked 0.25% and bought at market as soon as I found out that the Fed’s latest dot plot showed more members wanting even more rate hikes than their previous statement indicated.
Closed my USDJPY long at 112.30! Next Fed head speculations fueling pre-NFP profit-taking, imo #forex
— HuckleKiwi Pip (@LoonieAdventure) October 4, 2017
Unfortunately, the bulls just weren’t in the mood to push the dollar higher. Or they were, but not enough to induce another strong rally for USD/JPY.
In my case, the pair dropped back to the 111.50 area before Wall Street’s optimism from tax reform and a hawkish Fed pushed it above the 113.00 mark.But they just weren’t enough to convince dollar bulls to load up. What’s more, rumors circulated on the forex grapevine that Fed official Jerome Powell is in the running to replace Janet Yellen in February. And since he’s reputed to be a tad more dovish than my homegirl, dollar bears started stepping in.
Yesterday I decided to close my trade when the pair broke below a rising trend line that I was watching on the 1-hour time frame. I exited when the pair was trading at around 1112.48 but maybe due to volatility or whatever, I was able to close at 112.30. Darn spreads!
Anyway, here’s the gist:
Closed at 112.30 for a net of +5 pips (+0.008%)
It’s miles away from my last USD/JPY winner, but I’ll take it!
The NFP report is around the corner, anyway, so removing risks might be a good idea until I know more about how traders feel about the Greenback after they see the jobs numbers.
Speaking of, who here is planning on trading the NFP release? Forex Gump thinks analysts might be overestimating the impact of the hurricanes and that we’ll see an upside surprise. Do you agree? More importantly, will it be enough to push the dollar to new weekly highs?
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