08 Oct GBP JPY Day Trade Long Position Taken; 8th Oct 2012
Because the vast majority of my recent trading has been either Day Trades or trades lasting just a Day or 2, I’ve not posted details of them on here as they don’t fit within the purpose of the blog, and that is to concentrate on longer term swing trades that don’t require constant management and can significantly reduce the length of time required at the screen.
With a reduction in available high probability swing trading set-ups over recent Months, the blog often goes many days between posts, so going forward and time permitting, during ‘dry’ periods I’ll attempt to update on some of my day trades.
So here’s one I’ve just entered….
GBP:JPY doesn’t look particularly bullish on longer time frames but I like the way price has reacted around the 125.30 Support and Resistance level on the Hourly time frame. Today’s test of this area coupled with strong rumours of imminent BOJ intervention was enough to persuade me into a long position with stops beneath this area of support.
It must be noted that price has printed two well defined lower highs and certainly doesn’t look attractive in the longer term, but at the same time, it almost looks too obvious to short, and we all know with trading, when something looks too obvious it is the opposite that often occurs!
Without going into too much detail about the reasoning for this trade, the fact is, price is at support, and this makes the small risk worthwhile for at least a counter-trend move. Here’s the chart:
My entry is at 125.38 and if I can collect 50 pips before tonights close, I’ll probably bank half, or all of it, otherwise I may hold overnight to see what tomorrow brings.
Unless this somehow turns into a true swing trade, I wont include details of my Day trades in the trading log.