On Thursday Yen pairs looked lethargic. Probably because of holiday in Japan, coming right after sleep inducing rate decision by FED. All day long JPY pairs were contracting into ever tighter range, which formed very close to previous highs, best visible on hourly charts. While writing yesterday I expected a little more movement during Asian session and maybe gradual increase in short term moves, taking us into Friday. That would allow for fairly small target, but frequent trading on short term charts.
Well, nothing of interest happened then, price swings continued to get smaller and smaller, contained by past resistances. By the time Europe opened, the process lasted long enough that really small time frames could be scrapped, because hourly charts started to make sense again. Yen pairs were ready to move. Price behavior and chart patterns suggested resumption of an uptrend, but it would have been proper to straddle congestion zone with both buy and sell orders as well. As indicated in last post, I wanted to get in heavy, with as many JPY crosses as possible.
I placed few straddle orders, few directional ones, a lot of them. Moves came shortly after. All trades had take profits attached and most of them were hit. EUR-JPY produced 100 pips in a nice, directional run up.
Here, in AUD-JPY, the objective was smaller, and it was also reached.
Not everything was perfect. With Kiwi-Yen I got a little too ambitious and set T/P at 69.00. Once other objectives were achieved, decision was made to exit this at market. Still, good trade. As it turned out, that was extent of the moves and sharp reversal took place, so my exits happened almost at daily highs. There was more, but it is enough charts. Good way to finish a week, during which Yen crosses were the name of the game. Don’t remember last time when my trading was so dominated by JPY. Couple loose ends from earlier in the week- EUR-GBP sell order is still valid. It doesn’t look like it will happen any time soon, but I’m leaving the order active. Also, GBP-NZD buy order from yesterday is left live. Placement is correct, for now, at least. Have a great weekend!
Mike K.
[...] EUR-JPY produced 100 pips in a nice, directional run up. Here, in AUD-JPY, the objective was smaller, and it was also reached. Not everything was perfect. With Kiwi-Yen I got a little too ambitious and set T/P at 69.00. … View full post on EUR/JPY – Google Blog Search [...]
“Not everything was perfect.”- Wish I had this problem. These trades look perfect to me. Since you had sell orders placed, did you catch any moves after the sharp reversal?
Hi Mike, on nzd/jpy chart I see price reached 69. Did you get out before that, and if so why?
Renata. yes I did in CAD-JPY. Long trade was a wash, but once CAD started to sell off, short part brought 50 pips.
Hi Jess. That’s correct. After I got out, this pair moved a little higher and 69 was hit. Trade was closed before others reached objective and I wasn’t sure if the move would keep on. Besides, it had already showed good profit, so I realized it.
Thanks! What is your view on the Loonie, after yesterday?
I will discuss CAD before markets open tomorrow.
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Hi Mike! May I ask how you determined your target in the EUR/JPY trade? Thanks!
Hi Felix,
I use few different methods for setting targets. One is descibed here http://fxmadness.com/2009/11/21/general/setting-targets-for-currency-trades/
For these trades, since i took so many, I mixed things up. For EUR- JPY it was price projection using the larger swing biffer breakout and past resistance. Earlier on the chart, not visible here, there is a high at 126. Projection also came very close to that number, making it likely objective. Few pips were substracted, typical for me when past resistance/support is targeted and settled for even 100 pips. With a little luck, that number was hit.
[...] I did not even bother to trade. After watching the opening and finding nothing to trade, I took it easy for the rest of the day and focused more on what to do on Tuesday. And it is easy choice – try to take advantage of slow Monday. More often than not, days like today are followed by fairly large, directional moves. Not always, of course, but often enough to give it a shot. I do by placing simple straddles, covered here many times before. [...]
[...] followed by fairly large, directional moves. Not always, of course, but often enough to give it a shot. I do by placing simple straddles, covered here many times before. [...]