Live Trade – USD/JPY

Filed under: Live Trades |

I had a very nice trade on the USD/JPY come to fruition yesterday for a very nice 2.5% (based on a theoretical bank of 10,000) rise on the bank. If you look at my published forex trading account (at: http://www.myfxbook.com/members/jjrgaskell/daily-trade/357261) you will see that the account is once again at an all time high, and up around 50% actual since I began trading with this method in June 2011. That is also a modest 10% actual gain on the bank for this calendar year.

 

Figure 1,

Figure 1,

Let’s take a look at the USD/JPY trade, as there are a number of talking points. To begin with, take a look at Figure 1, which is the daily chart for the USD/JPY pair, and it is the only timeframe that we will need to look at for this particular setup. We entered at a 50% retracement of the first pin bar on this chart, with a stop loss placed just a few pips below the low of the pin bar, and a target of two and a half times our risk. Our stop loss came perilously close to being hit, and somehow, it managed to remain in tact (although price came to about within 1 pip of the stop loss). As you can see, price has since blasted upwards and our target has easily been reached.

 

The main reason why I put an order in for this trade is that the trend is so incredibly bullish, and I wanted to ride some of that momentum. Another reason, which added some confluence, is that the pin bar was rejecting a previous area of support/resistance on the daily chart. The 8-day EMA being well above the 21-day EMA merely confirmed the bullish momentum, and all of this was enough for me to initiate this very satisfying trade.

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