After making a 3 Drives to a top pattern during the Asian session, the USDJPY initially moved down shortly after the London open before making one last wave to the upside. A reversal pattern set up a short with a close below the Asian high requiring a 15 stop loss for a potential 81 pips to our Target 2.
The pair made its way down and the risk was removed from the trade by placing the stop loss at plus 1 pip. Price moved lower but buyers entered just under the middle of the Asian range – leaving a very wicky bullish candle and the trade was closed for acceptable gains.
In a risk off environment this pair potentially could go a lot lower…
The GBP is getting hammered and even the EURGBP cross is underscoring the sterling’s weakness.
Commodity currencies are very active and the EUR remains in a range. We will know more on the Euro after Draghi’s comments on Thursday.
Keep the stop losses tight. Money management as always is paramount to trading success!
Good luck with your trading!
Back tomorrow if we find a trade.