Today’s Trading Idea
After last week’s tremendous CHF-related move, I am trying to be more careful. We are definitely going through a historical moment, that is going to shape the retail FX field in the months and years to come. I hope you were not caught in the CHF-related move on the wrong side of the trade. To the ones of you that were on the right side of the trade- congratulations. It has been one of the biggest moves I have seen in my trading career.
Today’s trading idea is coming from USD/JPY. I have spotted a bullish engulfing pattern that formed on Friday. Today, there was a small bearish rejection candle. At the same time, price is sitting on a major support level at 116.00. Therefore, I believe that more buyers will join the move. This bullish move might start overnight, since China is supposed to post its GDP 4Q figure. In the end, we are still in a major uptrend and despite what a lot of people are saying (that JPY would be the next CHF), I will probably go long on this pair.
My trading idea is long USD/JPY. The entry price I will be looking for is 117.55. The stop for this position is supposed to be placed just under 115.80. The initial target is the level of 119.00. Then, I will be looking at the price action and decide whether to let the position run until the second target- 121.00.