USD/JPY: 4H
Long or Short: Long
Entry Point: two positions at 78.50 (market)
Stop Loss: 100 pips - 77.50 below 61.8 Fibonacci
Profit Target/s: Initial target 80.00 - ultimate target - 85.00
Reward-to-risk Ratio: first position 1.5:1, 2nd position 6.5:1 - average 4:1
Risk percentage: 1%
Indicators used: None
Trade Rationale:
This is more of a longer term trade. I think with the the bank of japan intervening in the markets yesterday, traders see that they mean business now. The bank will not let usd/jpy continue to fall. Now that the pair has retraced a little bit, I now buy at market 78.50 after a doji formed at the 50.0 Fibonacci.
I think there is high potential for this pair to go back to 80, or even 85. I bought two positions. My first target will be 80, while I hold 2nd positions to see if pair can go back up to 85.00. Stop loss of just 100 pips, past the 61.8 Fibonacci.
Trade Adjustments:
if my first target is hit, I will move stop on 2nd position to entry to protect my profits.