Wednesday, December 3, 2014

3 Dec 2014: USDJPY daytrade

I took a counter-trend trade on the USDJPY this morning. Price had been rising during the Tokyo session before it began to turn downward and retrace. I asked myself where the retracement would end? I identified a good potential support level around 119.300. This was yesterday's high, and was also located at the 50% retracement level of the bullish move. 

I then reasoned that if price was likely to fall to this level, why not short it until then? When I saw the potential of a lower swing high form, I felt this was a good place to short the USDJPY. I used a very tight stop loss, and took profit at 1.5R. I could've made up to 3R.

(click to enlarge)

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.