As we approached the retail sales release today, the USDJPY moved up just in advance – as if the market knew the number would be favourable. Risking 12 pips for a potential 34 pips to our daily target at 108.36 we went long too.
Price jumped higher, traded sideways for a bit, then moved higher going into the U.K. close where we exited the trade.
If we had waited any longer for an entry, we would not have been able to accept the reward to risk ratio. The USD has strengthened as the market acts in a way consistent with a short-term attention span. The market is definitely a two-way market and one week doesn’t have to be consistent with the sentiment of the previous week or previous tweet.
The good news is the daily ranges seem to be expanding a bit and the U.S. – China trade talks are progressing once again. Oil is off as the U.S. – Iran confrontation/provocation has decreased today.
Good luck with your trading!
