I closed out half of my USD/JPY position yesterday afternoon for a +94 pip profit & raised my stop to break even on the remaining half to give it a chance to make it to the full +146 pip target. And an hour ago, when I came back from the gym, I saw that the target had been hit for a combined 4-day profit of 230 pips.

Also, yesterday evening I opened up another long position on USD/CHF (See chart Below). While I’m usually not a big fan of range breakout plays as I just seem to have had bad experiences with them in the past, this one caught my eye for a number of reasons.

1.) The pair had fallen down into a prior known demand area from which prices had previously shot out of.
2.) Not only did prices fail to break down below this area, but they stalled & yesterday, price closed near the upper end of this range
3.) MACD momentum had long since turned higher & we are about ready to get a MACD cross
4.) GreenADX had turned higher and Red ADX turned lower indicating a possible change of trend to upside
5.) RSI crossed 50 to the upside

So I went long with a stop under the low of the range and a target of about 130 pips (the height of the range projected upwards). I’ll be looking to tighten my stop after today and will likely scale out half and let the other lot ride as I did with the USD/JPY trade…stick with what works right?

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.

I couldn’t help but fade this setup despite the fact that longer term, the EUR pairs have just broken out or area looking to do so and so are looking pretty bullish. But it was this EUR/GBP pair that really caught my eye.

Over the past 1.5 months, EUR/GBP has dropped 200+ pips in a very short period of time and has only now clawed its way back up to its original, untouched, starting point prior to the drop. This is usually a shortable setup in its own right, but add to that an FFF fade setup, price over-extension from the 10-EMA, and the rolling over ADX & RSI and it really is a no-brainer.

It may work, and it may not, but the Risk/Reward is very adequate for this kind of a play so I have gone short with a stop just over the most recent high looking for a pullback somewhere in between the 10 & 34 EMAs. If this play is going to work is should pan out within the next couple days. Anything longer than that and that could signify trouble for, as I said, I do like how the EUR is looking more longer term.