Today, I look at the USD/JPY pair to try to make a trade.
I can't seem to find any good entry points for the rest of the pairs yet. So I guess I'll leave those to the later part of the day.
As we can see, there seems to be a strong resistance line at the 119.0 mark of the pair. A strong sell every time this price is hit. In the forex world, small retail traders like myself don't move the market prices much or even at all. The big institutions or even the government are the movers of the prices. And part of my trading style is to ride on the waves of these moves.
Based on the above, I placed a limit sell near 119.0 level believing that the point will be tested again and based on the fundamentals currently, there exist no potential news release that would push prices past this resistance point. If I'm wrong, I'll limit my loss to 10 pips while looking to take profit at 20 pips.
When you trade, your risk reward ratio should preferably be 2:1. Of course this is still subjective on your risk tolerance, I would say that 2:1 is a acceptable ratio to look at.
This is my live trade. I'm not too sure whether the price will hit eventually, but lets wait and see.
Remember! Always to stick to your plan and not to chase after the price even if the price starts moving away from your price target.
Latest update 16:00:
Couldn't get into a position :(
A 30 pips move was made!
I got into a separate position on the ZAR/JPY trade thou which I'll update on my next post.
Am currently still having limit sell on the USD/JPY trade. However, it seems that its quite far from our target.
Latest update 01:00:
Those of you who got into the USD/JPY congrats! A 120 pips move was made.
I unfortunately threw all my funds into my ZAR/JPY trade and missed the USD/JPY trade. However, both pairs move correspondingly and will give off seemly returns.
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