Welcome to my financial markets trading and investing blog. This is where I discuss what I see in various markets, from a technical analysis perspective, and talk through the trades that I make. Read on to see how this short trade in the currency pair EUR/JPY played out.
First off, let’s start with my analysis from the morning of the trade:
I’m looking at this this morning, and considering shorting it, when I realized I looked at taking this long yesterday. It has been up all month, and has only been on a couple-day pullback; but at the same time I could almost argue a reversal starting back around the 15th.
Also, I started my analysis on the 2 hour chart this morning, hoping to trade the 5 minute chart, which wasn’t the case yesterday. I’ll stick to my current outlook
Like I mentioned, price has been trending down since roughly the 15th, but has been more so since the 25th. Since roughly midnight last night, this has made a small rally, where price reached the MA in the middle of the bands, and appears to be dropping from that level.
Entry – 162
Stop – 162.1
Target – 161.75
R:R – 2.5
Dropping down to the 5 minute chart, price had a rally about an hour ago, based a little, then pushed down through the lows of that base. As of right now, I’m not seeing an actual pattern to trade in to, but I like this short so I’ll keep an eye on it, hoping one forms.
Entry – 161.995
On the 5 minute chart, price had broke a support level, made a strong push down, then had a rallying candle. The one up-candle looked like an entry opportunity to me, so I set an order. Hopefully I wasn’t too overzealous.
It took less than 10 minutes for my order to fill, and from there, price continued pushing down. I had a fairly tight stop-loss, so I was able to move my stop to break even very quickly. Since I had moved my stop, I started looking at other charts for opportunities.
Exit – 161.749
While I was looking at something else, I got the notification that my take-profit order was triggered. Price pushed down to my target and I got out for a nice win.
The pattern was good, the price action was good, the overall trend was in the right direction and the indicators lined up. I played this nearly perfectly, and I hope to find more opportunities that look just like this one.
Thanks for reading! Let me know in the comments what you thought about today’s trade, and if you were able to capitalize on this movement. And stay tuned for more analysis and trades!