Thursday, April 30 Update

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.