Dynamic Trader Forex Blog FXCPS.co.uk: JPY Sunset

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = USDJPY : Day chart below.

Good Morning Guys,

The markets continue to feed us pips of late and I hope those following the blog are reaping the benefits. I was away from the markets since Friday, after popping over to Ireland for the weekend. I let NFP have its say and as you are aware was in 18 trades, so management of these had been taken care of. With trend trading you are in the trade for a while and news items are not as essential to you as they are to the scalper or short term trader. Even though NFP did not have much effect on my trades, I was stopped out of the JPY on Sunday evening around midnight.

I had taken an initial profit on this cross and was risk free so despite being stopped out, there was no loss. One tip I will give you is to deduct or add the Bid/Offer spread to your stop. This will prevent you from seeing a marginal loss from what you think is a break even trade. (If you record your trades on a spreadsheet, a minus (£-1.60) is a minus and recorded as a losing trade.)

You will see from the chart below that price in the JPY had broke out of its range and then came up and used support as resistance and this morning showing a return to its downwards movement. Stochasdtics is not showing any strength in the trend at present and re entry to the cross may be available at a later date.

I have entered this morning into the GBPAUD on a short position and will look at the setup in more detail tomorrow.

Please do your own analysis before entering a trade.

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Trade with Passion

John Maher
Forex Analyst