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| USDJPY Gap Trading 09 September 2013 - Click to enlarge |
Currency pair: USDJPY
Day: Monday
Date: 09 September 2013
Local open time (GMT +8): 8:50am (GMT +8)
MT4 open time: 3:50am
Type of order: Sell stop
Entry price: 99.70
Stop loss: 100.00 @ 30 pips
Target Profit:
Result: LOST Price hit stop loss
Why did I enter this trade?
Base on my analysis, last week daily candle was a big bearish candle. This move is also due to Non-Farm Payroll (NFP) news. And when it open today, on IBFX MT4 chart, it is an inside bar or sunday bar candle and a big gap of around 70 pips.
Chart analysis:
The last few daily candle touches resistance level at 100.10, but did not breakout. Same time, price touches the top of the channel trendline, but did not breakout. This could also be a reversal signal for price to move back down. When comparing with GBPUSD and EURUSD pair which is the opposite to USDJPY generally, both this pair show bullish sign in the last few daily candle. All this information provide confluence that indicates USDJPY will go down. So the trade is taken.
Update
11pm - 09 Sep 2013
Checking in on the chart at around 11pm local time, price have not move much. Price seem to retrace at around 99.55 which happen to be a support level. At this rate, considering how much GBPUSD and EURUSD have move today (100+ pips, DAMN!!! should have trade the Sunday bar), and USDJPY have not move much, I think it might take some time for the gap to close.
Also after looking at the chart again, the initial Target Profit was moved to next support level at 98.90. The initial target profit was place, is because it is the level where price close the gap, also the this trade was place rather swiftly because was rushing out to work. So initial goal was to close the gap. But since I'm checking in on the chart, I made the adjustment, because if price is going to close the gap, then there is high chance it will touch the next support, as it is only 10 pips away.
5pm - 10 Sept 2013
Check in on the chart and saw that price reversed and hit stop loss.
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| USDJPY Gap Trading 09 September 2013 - Result - Click to enlarge |
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