A few weeks ago I asked you about the type of content that you’d like to see on my blog… and most of you suggested me to write more about entries and the reason behind them… so here I am writing this post…

Setup

Yesterday I told you why I thought it was a good idea to go long in the USDJPY. On the long term charts, the market just broke through an important resistance and it is likely to continue its way up…

So we are clear on the long term charts right? If not, please refer to yesterdays post.

My Trading Plan

So created my plan… I showed you this chart:

And my plan was:

As long as the USDJPY traded above 101.96 I was going to be looking for long opportunities, that was my bullish mark.

Entry Signal

This is the chart:

I want you to focus in the orange box. I was waiting for significant rejection off the support level, which was exactly what we got: a significant reaction with upward pressure, that’s the reason I decided to go long.

The Future of this Trade

Now, this trade is far from being a successful trade (yet).

The only way I’ll hold this trade is if it breaks the short term resistance level. If it doesnt break before the end of the day, I’ll close it.

I already took partial profits around the top of the range. And of I close this trade later today, I’ll put a stop order to go long early next week, just in case it breaks that level…

Your Turn

What do you think about this trade and the USDJPY in general?

If you have any question, just leave a comment.

Have a great weekend!