Hey guys,

Now that the FOMC annoucements are over we can commence trading once again.

I’m seeing a nice setup on the USD/JPY pair.

GMT 6:45 - I just went long USD/JPY @97.35, SL@ 97.15 (20 pips), PT@ 97.80 (45 pips). Once price has moved 20 pips in my favor I will move the stop loss to break even. I may also shift the profit target higher depending on how aggressively the price continues to shoot up.

GMT 7:30 - The up-move doesn’t seem to carry much momentum, so I’m going to just exit the trade for a +25 pip gain:

GMT 9:25 - The up-move of the USD/JPY is showing considerable weakness, so I just entered short @ 97.73, SL @ 97.86 (13 pips), PT @ 97.20 (53 pips). This is an intraday trade:

GMT 9:55 – Position got stopped out for -13 pips. Looks like prices aren’t ready to come down. It was a risky trade and I’m glad I took only a small loss… after closing the position, prices continued to shoot up past the 98.10 level (at this time of writing). No more trading the USD/JPY pair today.

GMT 10:34 – I have just gone short for a longer-term trade on the EUR/USD. Prices broke above the daily resistance but couldn’t sustain the up-move and promptly dropped back below resistance. Short @ 1.3312, SL @ 1.3392 (80 pips), PT @ 1.3050 (342 pips). Going out for a friendly game of soccer (or football as some prefer to call it) now… will be back in a bit to show the trade on a chart.

GMT 15:06 – I’ve just come back and was pleasantly surprised that prices have moved about 110 pips in my favor. Prices hit the 1.3200 level and bounced right off it. I’ve immediately moved my stop loss to 1.3311 for a +1 pip protective stop. Now it’s only a matter of letter the trade play itself out. I might close this position later on if prices come down further because tomorrow is a bank holiday in Europe and trading volume is going to be thin.

To give everyone a run-through of why I placed this trade, here’s what happened on the EUR/USD daily chart:

After I noticed that the price could not be keep itself above the resistance line, I went to the 1 hour chart to look for a good shorting opportunity. This is the 1 hour chart:

GMT 20:00 - I’m not going to take any chances so I’ll close my position now. Closed @ 1.3218 for +94 pips. Tomorrow will be a no-trading day because of the European holidays.

The FOMC is coming up so prices may move in and unpredictable and erratic manner. No trading for today.

Yesterday saw little action in terms of price movement. The only notable currency is the EUR which had a big movement at 17:00 on most of its pairs.

With the FOMC coming up, I’ll be hesitant to hold on to any trades for too long.

GMT 04:00 – The AUD/USD is looking to reverse it’s uptrend. Here’s the daily chart:

Price is now at a critical support level. If it manages to breach itip, we will be looking for a retracement and enter into a short.

GMT 05:12 - Sold AUD/USD @ 0.7014, SL @0.7044 (30 pips), PT @0.6900 (114 pips)

GMT 06:45 – Price has moved 25 pips in my favor. I will move my stop loss to 0.7013 to secure a +1 pip gain

GMT 07:36 - Stopped out by an over-zealous retracement for a +1 profit. I will be keeping an eye out for another chance to go short.

GMT 16:00 – Looks like the breakout wasn’t able to sustain itself… prices are now heading up. No more trades for today.

Hello everyone! This will be a tricky week for trading… so do be careful when entering your trades.

Last week, we missed out on two good opportunities because we were being a tad too conservative. We will be looking to trade slightly more aggressively now, although we’ll certainly still be trading defensively.

There are no clear setups at the moment, so we’ll just sit back and let the market tell us where it wants to go.

GMT 09:30 - Price has not made any significant movement so far. “When there’s nothing to do, don’t do anything!”

GMT 14:35 – No setup so far. I’m going to call it a day.