Anatomy of my trade in the USDJPY (including entry signal)

yen

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:

USDJPY Short Term Analysis

And my plan was:

My plan is to wait for the market to get back to the short term support level, and if the USDJPY gets strongly rejected (with upward pressure: any significant bullish pattern) from that level I’ll go long.

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:

USDJPY signal

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!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Chandana

    Great Lesson, excellent explanation. Thanks a lot Raul for your post.

    In my view, the essence of the story is that, if we can correctly judge which side is stronger (Bull or Bear), then we will have a very high chance of success. Am I correct?

    I have traded the ‘Pin Bar’ very reliably . But now only I fully ‘visualize’ why it works most of the time. Your story gives me lots of ideas. Thanks Again!

    • Raul Lopez

      Hey Chandana,

      You are right… that is what is all about: 1st. Knowing whether to trade X pair or not, 2nd which direction to trade it… That’s it. Then you can use whatever system you feel comfortable with…

      Cheers!

  • thanks Raul . A great entry strategy – trade the trend, buy at support, weight of evidence confirms uptrend on daily and weekly charts for this pair and indicators – MA and slow Stochastics (weekly chart) point to strong up trend long-term. I missed your entry and have to wait for a break above 102.8 on the daily chart.

    • Raul Lopez

      Simple yet effective… isn’t it?

  • This is what I called the excellence , thanks for introducing for such a wonderful and efficient methodology Mr. Lopez ! the knowledge you are sharing , reveals your nature ! thanks again !

    • Raul Lopez

      Hey Himanshu,

      Thank you for your kind words… It’s just the market you know… sometimes it moves on our favor and sometimes it doesn’t, we just need to make sure to make the most when the market moves on our favor, and try to lose the least when it moves against us…

      Cheers,

      • Himanshu Dutta

        you are exactly right Mr. Raul Lopez

  • Tunde

    Sensible approach, you have a unique trading style….hnmmmmmm!

    • Raul Lopez

      Cheers Tunde… have a great weekend!