Trading Forex and CFDs is risky

JPY Keeps on giving – USDJPY Target 1 hit

Market Analysis
2016-06-16_11-17-05

USDJPY, Daily        

The USDJPY Daily trade I identified on Monday (June 13th) was triggered on the close of the Daily candle that night with the Target 1 realised yesterday (June 15) for a 75 pip gain. This was prior to the huge move we have seen following the FOMC and BOJ announcements and press conferences overnight where we now see the pair sub 104.00 (another 150 pips further down).

It is also a reminder to “trade what you see and not what you think”. One of the many mind games that lead to successful trading is to not worry about  “what might have been” or how many pips you would have made if you’d “just left the trade on that little bit longer”.  That nagging little inner voice will ultimately detract from your success. The comfort of trading from completed candles and completing analysis before the event is that you set your entries and targets and let the market come to you. You do not need to “chase” trades or go “trade hunting.”

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Trading on the Daily timeframe allows for Target and Entry levels to be set without the “noise” of the intra-day moves, and although I have “missed” the larger moves trading this way, the benefit is that you do not enter a market too soon and you can trade with much less stress. Patience is a skill that all successful traders practice very time they open a trade.

The strength of the yen and weakness of sterling has also seen the GBPJPY 148.80 Monthly support I identified on Monday to be breached this morning, a 100+ pip move. Next down levels remain 145.15 and the 2013 low of 140.20.  Brexit and its implications continue to dominate markets and with polling day less than a week away uncertainty continues to rise as quickly as the YEN and the price of GOLD.

 

 

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Stuart Cowell

Market Analyst 

HotForex

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