USD/JPY 2006-02-21

February 22, 2006 by Trader Rich

UPDATE!!! The pair has dropped another 70 pips since I exited. That is why I am far from reaching my goal.

TRADE

Date: Tuesday, February 21st

Entry: Short USD/JPY at 118.78.

Reason for trade/setup: This trade was mostly based on the fact that resistance was up above at 119.00. Furthur confirmation was obtained from the crossover of the Stochastic (9(3),3) from overbought territory.

Initial Stop: 119.06, which was 6 pips above the high of the entry day.

Initial Target: 118.00 which is the top of the Ichimoku Kumo or cloud.

RESULT

Exit: 118.35

Reason for Exit: Profit taking. I needed to get back on track this week. I couldn’t leave $1000 on the table

Profit/loss: 43 pips / $1070

Trade executed according to plan? no; early exit

Outcome: After trade entry, the pair played with the 119.00 resistance level for the entire U.S. trading session before finally finding more sellers than buyers at the Asian open. The pair then stalled at 118.40 during lunchtime in Japan on Tuesday evening. The pair retraced almost back to the 119.00 mark on Wednesday during the European session before heading back down. There is solid resistance at 119.00. I exited the trade before my target. The main reason was for my need to get back some of my losses from the week. I didn’t want to leave $1000 on the table.