Live Trade Result – USD/JPY

Filed under: Live Trades |

I had a live trade go wrong on the USD/JPY pair today, but it was a good setup, and I would like to talk you through the setup right now.

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the USD/JPY pair (the exchange rate between the United States dollar and the Japanese yen). As you can see, there is a very strong bull trend in this pair right now. The 8-day exponential moving average is crossed well above the 21-day exponential moving average, and it has been for some considerable time. Therefore, we only really want to be in on long trades on this pair for the time being.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for the same USD/JPY pair. You will see that I have marked in a significant area of support/resistance on this chart (marked with a horizontal green band). Therefore, when price approached this level once again and formed a very nice bullish pin bar, I put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the pin bar, and a target set of two and a half times my risk.

Figure 1,Figure 3.

 This order was filled, and price subsequently hovered around this level for a couple of sessions. However, unfortunately, price has since plummeted lower and our stop loss has been hit for a 1% loss on the bank (see Figure 3). However, this was a good, strong setup, and I feel that no trading errors were made on this occasion. This is merely the cost of doing business. Well, that’s it for today, and I’ll be back with more tomorrow…

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