After a fearful Monday and a broad selloff in the major international equity indices, it was back to onward and upward today. Although the USD was not particularly strong today, the JPY was quite weak.
A long was taken early in the U.S. session overlap risking 8 pips for a potential 30 pips to our daily target at 114.10. The stop loss was placed just below Monday’s high. Although the pair managed to climb higher, there was a concern that the 114.00 level would hold… so locking in profit as price went in our direction was important.
Many trades the past couple of months have run less than 20 pips… with some exemptions. Trading has been more challenging and pullbacks without locking in profit can be very frustrating. Today as the USDJPY closed above our target the trade was closed. At this stage, I thought price would pull back to retest the 114.00 figure but it did not.
I will be around tomorrow looking for trades. If I catch a good one, I will post it. If not, I will be watching the markets next week, but expect they will be quieter going into year end.
Enjoy the holidays and stay healthy!
