Slew of economic numbers came out of Japan today. Without getting into details, they were all bad, yet the Yen managed to get stronger. No dramatic moves, just steady climb, or fall, if we look at the crosses. Interesting. Meanwhile, Bank of Canada cut rates by 0.75%, rather surprising the markets, well, market participants. Overall, however a very quiet day. I spent most of it sitting on my hands.
Behavior of JPY made me wait for most of the day before I entered into any short term GBP-JPY trades. There simply were no upside breakouts, all the minor highs held. Eventually, though, I managed couple of trades.
First breakout was rather uninspiring and my target of 100 pips was way out of line. I settled for 14 pips gain, and waited for next one. Objective was adjusted to my historical average of 60 pips for these kind of trades, and second trade produced just that. Frankly, for the way most of the currencies moved today, I consider it good result.
My other intended trade, in EUR-GBP, didn’t happen.
Pound kept on loosing ground here all day, forming both new high and minor low. My sell order was moved up 0.8655. Now back to waiting.
I poured bunch of charts today and most of them like prices contracted to yesterdays ranges. Hourly charts are full triangles and similar patterns, which I don’t trade, but don’t show anything of what I’m looking for. Seems like I have to wait for more price development, before placing new orders on 1H charts.
There was one interesting set up I found on 4H chart of EUR-AUD.
Looks to me like this cross is ready for another leg down. As far as I’m concerned, confirmation of going under 1.9235 is needed. That’s where I put a sell order, with on objective of 1.8900. I’m not sure if I’ll follow with this trade, because depending on what happens on shorter term charts of all other crosses, I might find other ones. Chances are, they would take precedence.
Mike K.
One can tell you’ve been at this game for a while. You know when to play and when to stay out. Good work, mate!
Nice work on GBPJPY. It takes someone very nimble to get out with only 14 pips — most would have held until realizing a loss because, as you alluded to in your post, profit targets are much higher for this cross. Well done in recognizing the ranges would contract today. All the better for adjusting your trade plan to accommodate that realization. You played that like a master.
On EURAUD, good luck. You need a 250+ profit target to account for the wide spread. I’ll be following this trade idea with interest.
Nice work man.
Thank you. For EUR-AUD I’m looking at 1.8900 for target, but like I said, if there is a lot of going on on smaller time frames, I might drop this one. Don’t want to have too many trades at the same time. For now it stands.
Alex, I will send you an email later on today.