Ugh, talk about being too cautious! My adjusted stop loss got hit on a quick dip just before price made it all the way up to my target anyway. In case you’re wondering what I’m ranting about, make sure you read my initial idea and trade adjustments blog posts first.
Long AUD/JPY Trade
I went long at market on this pair when I saw that it broke past a double bottom neckline and completed a short-term pullback. Fundies were definitely in favor of more Aussie gains and yen losses at that time, so I set my sights on the 87.00 area as my target.
Price gained a lot of bullish momentum since, popping up to the 86.50 minor psychological level after Kuroda emphasized that the BOJ isn’t quite ready to reduce stimulus just yet.
However, I started having doubts that the climb could carry on as the end of the week, month, and quarter was fast approaching. During these days, profit-taking usually triggers sharp reversals as traders tend to close out their positions.
Because of that, I rolled my stop up to lock in some gains in case a selloff does happen. I was also wary about the upcoming inflation reports from Japan late last week, knowing that I wouldn’t be able to watch price action live and make necessary adjustments during the release times.The pair did chalk up some losses last Friday, but this turned out to be a small pullback from the strong rally. Tokyo’s core CPI and Japan’s preliminary industrial production both printed dismal results, spurring more yen weakness.
AUD/JPY eventually hit my target at 86.75 earlier this week as yen selling accelerated on rising U.S. bond yields.
I can’t help but feel bummed out about this one since I know I could’ve locked in a 1.14 R:R instead of ending up with a measly 0.21% gain on my account. But hey, a win is a win, right?
Here’s what I got:
P/L: +60 pips / +0.21%
Not exactly the comeback finish I had hoped for by the end of Q2 but at least I’m not ending with a loss. I’ll be crunching up the numbers for the quarter soon, so stay tuned!
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