For the last few days I have been tracking, and trading, Yen crosses. Moves have been large, relative to most recent history, so good number of pips could have made, or lost. In my opinion, this sudden jump in volatility made for difficult trading conditions, even though I’ve been getting ahead. Well, week is over and time to wrap JPY trading up. For the time being at least.
Previous post dealt with, of course, Yen pairs. I focused on GBP-JPY as an example of next trade. Looking for breakout, buy order was placed 160.50. Also, another buy order was put at 156.25, area that previously had shown strong support. Price retraced to around 158.00 end stayed in this fairly narrow band of 100 pips for about 12 hours. This is a long time of inaction when compared to most recent activity. At around 11:30 PM EST, in comments to last post, I suggested to get on the move out of that zone. For GBP-JPY it was a buy, so I placed another buy order at 158.50.
Price moved very nicely, but to the downside and kept falling for some time, eventually getting to about 156.00, previous major support. My buy order was filled then. It was held until the end of day. I closed it at 156.93, or a gain 68 pips. Comparing to the size of the price swing, not very much, but still a positive outcome.
Latest developments had bearish undertones. My vision is a little clouded by long term beliefs, but, in light of what the charts were indicating, I also tried short trades. With EUR-JPY, I became really “clever” and put a straddle trade just outside its congestion.
Price broke to the downside, order was filled at 135.45. I placed target in the neighborhood of latest low, about the same area where a buy in GBP-JPY was set. Objective was reached for 110 pips and the support held as well. I didn’t follow it with a long trade, the beast position was enough.
One more trade was made in CAD-JPY. Principle was the same, selling the breakout. This trade also stopped where intended and target was reached for 110 pips. No follow up with a long trade. Orders for these trades were placed just after the comment in last post.
One should probably focused on the fact, that the support mentioned several times in the post held for now. This is probably the key to next trades, but it is better visible on 4H charts. If it goes, all JPY crosses might be in trouble. We’ll see next week.
Mike K.
Good to see you making pips Mike. Sometimes I am just happy to see an independent trader making the money. I took a small position Thursday short overnight when gbp/jpy broke 158. Sold aud, cad and eur also. I try to spread it out with the crosses in case some central bank decides to go on television and announce that they don’t have a recession really. Australia on Thrusday I guess. Canada about three weeks ago. Anyway, the crosses were flatlining, but because I held it small, I just went to sleep on it. Woke up and when it wouldn’t break 156, I covered and took about 180 pips. This leaves me flat for the week. I am happy, though I could have made more pouring coffee in Dunkin Donuts with the hours worked. Guess I have been really cranky since Jean Pierre started playing games with the chf and tout television went full monty on the bull with the spoos.
Good score on GBP-JPY. Now we have to watch 156.
Those were nice moves. Did also sell aud/jpy and nzd/jpy?
NZD-JPY was too strong so I left alone. Kiwi will have its turn for big moves and maybe I’ll catch then.
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