Looking at all of the baskets this morning, nearly every currency’s price had made a large move in the opposite direction of the overall trend (at least the direction I expected it to continue). I wasn’t initially going to take a trade, but I wanted to see which, if any, currency looked like it’d head back in “my” direction the soonest and see if there were any opportunities.
USD was the closest to it’s open, after having a slight dip, so that looked promising and JPY had dropped so far, it looked like it could continue on a breakout. I looked at USD/JPY and it was in a nice high-base pattern on the hourly chart. I ran the numbers, my R:R was above 1.5, so I set entry orders.
Entry – 110.232
For a couple of hours after setting my entry order, price continued to base for the most part, but eventually pushed high enough to trigger my entry.
| Entry Order Level |
|---|
| 110.232 |
| Stop Loss Level |
| 109.47 |
| Target Level |
| 111.56 |
Exit – 110.662
Price steadily moved in my favor throughout the day — eventually reaching 1R and moving up enough that I was able to follow my stop along the SAR on the hourly chart. Price never quite reached my target, so I wasn’t able to start following the SAR on the 15 min. chart before price reversed enough to stop me out. It was still a nice 43 pip gain!
