A JPY short, setup 30 minutes into the US session. Yesterday the pair had moved down and tested the 122.50 area before finding buyers. Today the pair could not get above its Asian high. As the US session got underway it began to sell off. With a 20 pip stop loss and a potential 85 pips to our Target 2, we like the R/R. The idea is to get the risk out of the trade as soon as possible and lock in profit as the market moves in our favour toward our targets.
The first level to get through is the Asian low – followed by where price bounced yesterday, in the 122.50 area. As price approached this level, buyers entered and a candle with a long lower wick prints. We had placed our profit stop halfway down the preceding long red candle and the market closes our trade.
This week was challenging for finding good trade setups. We will see what next week brings us.
Enjoy your weekend!
Back Tuesday if we find a trade.