JPY sells off during the Asian session and reverses upward during the UK and US session..
The UK traders lured in breakout shorts and reversed the market. Once the news was behind us, we waited for an entry to set up and find one at yesterday’s low. The Reward to Risk ratio is greater than 3:1 to our Target 2. Price climbs in the first hour, retraces slightly and moves sideways in advance of the US session and pending economic news. We move our stop loss up below structure – the trade is stress free.
After the US Employment and Core CPI numbers are released, the pair begins to climb again and we keep moving our profit stop up. As wicky candles with large upper wicks print… forecasting a potential reversal, we tighten our profit stop and the market takes us out of the trade. Subsequently the pattern is completed without us.
The market is getting active again and familiar patterns and setups are becoming clearer and easier to trade. January was the slowest month that I have seen in years.
Good luck with your trading!
Back tomorrow if we find a trade.