Last week, I spotted a potential trend reversal on USDJPY.
DollarYen has been trending bearishly for the 1991 and only in recent year 2013, BOJ has failed to meet many “promises” which leads to the fall of its currency price against the strong dollar. Monthly Chart indicate that 2007 high has been broken, a sign of a trend reversal on this market pair. As, I have noticed market has bounced of from key level, I’ve decided to hedge my trading idea on the smaller timeframe.
Last Monday on the Daily Chart, I’ve noticed that market was trading in key price action level. Additional, market channel was broken only few days back. It gave confidence for a potential entry soon… but I didn’t believe it to be so soon.
Eventually, I’ve landed an entry on the 1Hour time frame as the 4hour proves unwise from a RR ratio perspective. My entry on this chart was a patient one as I waited for market to break previous high before entering. It led to a 1:6 RR ratio, exit was done forcefully as I got distracted with non-farm payroll data release. Didn’t really consider it a bad trade management but could instead put a trailing stop loss based on price action instead.
Hope all of you got a hold of this trade too
“Lessons were taught in every action done” – xxx