There is a continued sense of fear and uncertainty in the financial markets resulting in the USD being weaker and the JPY stronger today. The opposite of this was true yesterday when President Trump put the tariffs mostly on hold, causing USDJPY to soar higher.
Today, apprehension was back and after waiting for the U.S. economic news to pass, a short was taken in USDJPY.
The pair moved lower and our target was reached before the U.K. close.
You may wonder why I didn’t stay in longer to test yesterday’s low. I had my target set and the trade closed while I was looking at something else. My targets have very high probability of being reached. If I like the setup, take the trade and reach my target… I’m satisfied. Being greedy is a trader’s enemy. People that last in trading understand this.
Always use stop losses. We can’t control the markets but we can control how much of a loss we are willing to accept when taking a trade. I don’t recommend risking more than 1 percent and I rarely risk that much.
There is a lot of U.S. economic news scheduled for Friday, so be careful with your entries anywhere near them.
Good luck with your trading!
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