Well I finally figured out a way to take some basic chart pictures on my temporary trading pc so I wanted to show you the play I’m currently in with the USD/JPY. In a way it is a good thing that I missed the huge volatility spike over the past couple weeks for it has set up this beauty of a counter-trend fade that should easily yield 100+ pips in a fairly short period of time.

Had I been watching this closer, I may have attempted to fade this move much sooner thinking that “it couldn’t keep going lower”.

There was a channel breakdown that occured around 119.00 (as noted by the red box). Had I seen this sooner, I could have gone long sooner around the Fade Reversal Area abound 115.50…this is calculated by projecting the height of the box downward from teh breakdown and then going long.

By the time I noticed the powerful fading opportunity, price had already rallied 100 pips from this initial area but anticipating more bounce still to come, I went long 2 lots around 116.42 with an initial target of 118.00 and stop under the most recent low. There is a good chance that I will adjust my target and start scaling out tomorrow if price doesn’t make it to 118.00 because this is new territory for me in the FX Market and I don’t really know what to expect.

If I had to take a SWAG, I’d say that over the coming weeks/months price will continue to meander up to the 119-121 area and then roll over again and continue the downtrend. But my focus is on the next could days and scoring another 50-150 pips / lot. So far so good.