Live Trade – AUD/JPY

Filed under: Live Trades |

I have yet another trade example and another successful live trade to tell you about today, to add to the one on silver that I posted earlier. This time, the trade setup came on the AUD/JPY pair, which is the pair for the Australian dollar and the Japanese yen.

 

Figure 1.

Take a look at Figure 1. This is the daily chart for the AUD/JPY forex currency pair, and this is the only chart that we will need to look at for this setup as we will not be using the intraday charts for this one.

 

As you can see, there is not a single, dominant trend currently in place on this chart, but rather, price seems to be stuck in a trading range that has a clearly defined upper and lower boundary. If anything, the momentum is currently up as the 8-day EMA has crossed above the 21-day EMA, showing that the bulls are currently winning the battle, but not yet the war.

 

Price recently formed a bullish pin bar off of a level of support that I had marked in on the chart. There was also plenty of space for price to move into before is once again reached the upper boundary of the trading range.

 

I put an order in here to go long at a 50% retracement of the pin bar, with a stop loss placed as usual just a few pips below the low of the pin bar, and a target set of two times the risk. This again came to fruition very quickly for a very nice 200 GBP rise on the bank (which you can see at: http://www.myfxbook.com/members/jjrgaskell/daily-trade/357261) . This is yet another great example of price respecting an area of support/resistance. Well, that’s it for today, and I’ll be back with more tomorrow…

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