My USD/JPY Trade (02-02-2009) --- Position Squared

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Hi everyone,

I apologise for not posting any of my trades for quite sometime, the reason being, I felt lazy :P Hahaha! At any point of time, any trader will always have the highest tendency to feel lazy. On top of that, whenever I am lazy to post my trades, I will not post at all because I do not like doing things half-way. When I do it, I want to give my best.

Anyway, let's start. By looking at how market ends last week, I told myself this week will be quite tricky. Believe me, I woke up at 7am (Singapore Time), today, 02-02-2009, on a Monday morning to kick start my analysis and to see how the Asian Indices and Stock market were behaving.

Early morning, Nikkei 225, had a negative opening and and it stayed that way the whole morning. With this, I switch to USD/JPY chart to monitor what is and what will happen. According to my chart (attached image), the daily pivot point was holding up quite well and after the down close at the 3am (GMT Time) candle, I have set my mind to be on a sellers side of the story and because my Weekly Pivot has been breached on the down side.

I initiate a short position at 3:47pm (Singapore Time). A minor support line just below the Weekly Pivot has been breached and I waited to execute my mentioned trade at the price line of 89.49. With Moving Averages on the downside, my Long MACD is down and my Stochs decides to turn back on the downside. Stop Loss at 89.79 (30pips) and Target Profit at 88.85 (64pips). Risk : Reward = 30 : 64 = 1 : 2.13. Reason for my target profit, being there is a double-bottom chart formation under Weekly Chart, I do not want to push my luck too far :P I am a conservative trader. Hence, my target profit was placed at the price line of 88.85 which is just above my Weekly Pivot for last week and coincidentally it is near to Daily Pivot Support 2.

As price moved lower and closes at the price line of 89.35 at the end of the hour, I shifted my Stop Loss to Protective Stop at entry price and as price goes lower and the Daily Pivot Support 1 has been breached, I shifted my Protective Stop to 10pips in the money.

This trade was closed at 05:02pm (Singapore Time) when my Target Profit was hit. 64pips profit for this trade.

Peace and trade safely everyone...