My last shared trade turned out to be losing one. Oh well, such things happen in Forex trading. But, anyway, today I’d like to share another trade with you. It’s a pull-back trade on USD/JPY, which is based mostly on fundamental analysis. In my opinion (confirmed by the pull-back that happened on October 9), the Bank of Japan is very uncomfortable with the USD/JPY rate below 88. It will use the currency interventions to hold the rate above 88, and preferably above 90. If it won’t, in fact, intervene, BoJ will at least offer some speculations about a possible intervention, which will move the Japanese yen down against the U.S. dollar. Here you can see the position’s details:
Parameters of the position:
Currency Pair: USD/JPY
Direction: Long
Entry Price: 88.24 Stop-Loss: 87.75 Take-Profit: 91.73
Reward/Risk Ratio: ~7.1
Risk Amount: 1% Update: Nice! Got stopped out in 10 minutes :-(. Must be a rule — if I share a position it’s going to be a losing, so should go in the opposite direciotn :-). Still, I will wait for a pull-back from the current levels and enter long on a bullish daily candle.
If you have any questions or comments regarding this USD/JPY pull-back position, please, feel free to reply via the form below.
