USDJPY Short

Trading Discussion
1

Japan currency weakening and QQE phases coming in to force soon, Dollar showing signs of strength only shaky bit is the Fed tapering but this shouldn’t happen for a few weeks. Uncertainty should mean currency sticks to current sideways trend.

Weekly chart showing resistance met last week + possible head and shoulders (ish) pattern forming.

Daily chart showing bounce off of resistance at 99.000 previous bounces of resistance were at 99.500 and 100.000, lower highs.

4 Hourly 20&40MA about to cross, price racing through the kumo cloud.

Entry @ ~98.800
TP1 (SL to breakeven) @ 98.500
TP2 @ 98.000
SL @ 99.300

Risk 50 pips
Reward 110 pips

Weekly chart

weekly.jpg700×489 48.7 KB

Daily Chart

daily.jpg700×489 52.9 KB

4 Hourly Chart

4hourly.jpg700×489 62 KB

2

You should have made 30 pips by now and moved SL on second half of position to breakeven.

3

Move SL to 98.700 for around 10 pip profit locked in.

Ok we’re free of the kumo cloud which has a flat edge, so price may retrace to here before going further down.

Just in case price doesn’t bounce the kumo we move our SL to +10.

4

Ok we got stopped out on the bounce back in to kumo cloud for a total of 40 pips profit.

5

As a side note if you were higher risk trader you could have held on to this trade for full profit 110pips.