Live Trade – USD/JPY

Filed under: Live Trades |


I have a very nice trade on the USD/JPY pair at the moment, which for those of you that still don’t know is the exchange rate between the United States dollar and the Japanese yen. If you take a look at Figure 1, which is the daily chart for the USD/JPY pair, you will see the basic set up.

Figure 1.

Figure 1.


What you can see here is a bull trend in action. The 8-day exponential moving average is crossed above the 21-day exponential moving average, and if you zoom out on this chart, you will see that it has been for quite some time. This market is VERY bullish.


I have also marked in on the chart a significant area of support/resistance (marked with a horizontal green band – the lower one). What you can see is that this level first acted as a resistance level on the way up, and then, once price broke through this area, it then acted as a support level while the market took a breather. Now, once again, price has moved back down to this level, and it was at this level that I was on the lookout for any bullish price action signals.


A nice bullish pin bar formed right at this level, and it was here, at the close of this pin bar, that 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 three times the risk.


This order was filled, and price has since gone to my target level. However, as this move was so bullish, I moved my stop up to a level of two times my risk (thus locking in a 2% rise on my bank), and moving my target to four and a half times my risk (which also happens to be at the high of the chart). We will see how this one plays out…

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