Trading remains volatile as headlines can potentially cause 50 to 100 pip moves very quickly in the current market environment.
Today after moving down in the first half of the U.K. session, the USDJPY found a bottom around 108.15 and began to move higher in advance of the U.S. Open. A long was taken risking 13 pips for a potential 59 pips to our daily target at 108.87.
It’s not uncommon to see some profit taking before the U.S. Open, but with a “risk on” sentiment today and a low risk entry, we reduced the risk even more by quickly moving our stop loss up to the low of the candle just before the open.
The trade worked well with our daily target reached – closing the trade in advance of the U.K. close.
Volatility will continue as the Brexit deadline of October 31st approaches and the GBP can accelerate in either direction on a headline. Although the markets have been optimistic regarding the U.S. – China trade talks since last week, this too can change on any given day.
Good luck with your trading!
