Live Trade – USD/JPY

Filed under: Live Trades |

I have a live trade currently in play on the USD/JPY pair (the exchange rate between the United States dollar and the Japanese yen); and I would like to talk you through this rather simple and elementary 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, and it is the only chart that we will need to look at for this particular setup, as all the data that we need is included in this chart.

 

You will immediately notice that this pair is still in a very strong bull trend with a lot of bullish momentum. The 8-day exponential moving average is still crossed firmly above the 21- day exponential moving average, and the chart is very visibly moving up from left to right. There is no doubt that this pair is bullish; therefore, we should only really be looking to enter this market on the long side.

 

Therefore, when a nice bullish pin bar formed, coming off of the 8-day exponential moving average (which is considered a ‘value’ area), and a level of support/resistance (marked with a horizontal green band), 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 times the risk, which is just before the high of the move. This gives us a nice risk-reward scenario of 1:2.  The trade has been entered and has currently moved into some profits. We will see how this one plays out in due course… We also currently have a live trade still in play on the gold pair, and this is carrying a slight loss at present, so we will also see how that one turns out too and review at the end of the week.

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