Last week wasn’t a good one for me. Though the number of winning trades was more than the number of losing trades in my Mega Traders FX account, USD/JPY broke my heart! While I expected it to be the most profitable trade of the week, it ended up with a loss of 50 pips. Nonetheless, I will take that as a lesson and will review the whole process so that I do not make the same losing trade again in the future.
Due to the risk aversion tendency of the market, I was looking for a Yen pair and found USD/JPY as a suitable one. I targeted the 15 minute chart. Both the 50 percent feb level and resistance levels supported my idea of going short. I got myself entered into the trade at 97.70, with profit target at 97.05 and stop loss at 98.20. Everything was perfect and going according to my plan, the pair was brought down to 97.50.
The comments of Obama seemed to have turned the pair upside down. News spread out that the US will pledge for taking actions against Syria. This caused risk aversion flows to be directed into Yen. As a result, USD/JPY moved to 97.90 from 97.50 within a few hours. When another repot came in that the Obama administration has not yet decided about the probable course, the market sentiment went upwards. USD/JPY was quickly pushed through the retracement area and went over the 98.00 psychological level. My trade was stopped within minutes of the break.
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