News of the day for Forex traders most likely were the Central Banks announcements. After all, both Bank of England and European Central Bank were making rate decisions today. ECB left rates unchanged at 2%, while BOE cut its benchmark by 0.5% to an all time low of 1%. This all seems like old news by now. Everybody is cutting rates, blah, blah, blah. Granted, Pound surged on the news, but then again it had already been moving up for some time. This just caused another swing upward. Incidentally, it was welcome by me but for other reasons. As far as I’m concerned, Yen stole the show today. JPY came under serious pressure against, well, everything. I’ve been waiting for this development for some time with orders waiting to buy Yen crosses. In the last post, A lot of trades, I covered a buy in NZD-JPY. I removed yesterday’s comments from the chart to make it more clear.
After a series of trades yesterday I placed another buy order at 46.21, with an objective of 150 pips. Earlier this morning this trade came intended conclusion, in a surprisingly swift fashion. While I didn’t expect the speed of this move, don’t have any complaints about it. I will leave this cross alone for now.
Back to Pound. For some time I’ve been carrying a GBP-JPY position. It is described in greater details in Sour Kiwi. It was based on daily chart and a week ago I exited half position. Today I closed the rest.
Objective was 136, but I couldn’t help myself and got out a little sooner. Turned out to just around the top of this bar, but this is coincidence, not any “knowledge” that the market would turn there. I was simply happy with it at that point. I’m pretty sure we’ll see 136 soon, maybe tomorrow, maybe next week. On Saturday I’ll try to take a longer term look at the beast and sketch out couple of scenarios.
I’m adding another order, this time a buy in CAD-CHF.
Plan is to get in on the breakout from this 4H chart formation at 0.9575. First target is 0.9800, and extended one at parity. I must stress, this is 4H chart so it might take some time and draw-down could be deep.
Some other trades mentioned on this pages this week are also under way. Namely longs in GBP-CHF and NZD-CAD. I’ll cover them tomorrow, as time is running out now.
Mike K.
So, I was right.Great trades. I took the gbpjpy trade, but exited two days ago. Still, it was 500 pips.
500 pips is nothing to complain about. I’m sure more will follow. Congratulations.
What a trade. Both of them. The beast trade is as good as it gets, with exit at almost exact top. Congratulations.
Thank you.
This is very nice. Can you share what is your view on gbp/jpy now? Looks like it is going down so do you plan on buying it again soon?
I don’t think we will see another run up on Friday. Most likely next week the high will be tested. But this is just a guess, one has to follow price development, with 1H charts being the key.
Mike, this is one hell of an exit from gbp-jpy. Can you explain why you close the trade there? It might help me time my exits better.
Splendid work, mate. I think NZD/CAD also arrived to destination….
BJ, I had couple of other Yen trades at that time, including NZD-JPY, covered above. Those trades reached their targets at about the same time and prices moved so fast, that I simply decided to exit all JPY trades.Beast was very close to objective, I was happy with it and this is all. I didn’t know this would be high for the day. I’m sure we will see 136.00 soon, though.
[...] trade in GBP-JPY and managed to catch most of this up swing. More details on that are in a post Yen stole the show. This move surely seems impressive, but compared to the scale of preceding sell off, it barely [...]