Maybe. But you can call me Invest Diva 🙂
Once again, the Invest Diva Diamond Analysis on USD/JPY came true at the EXACT entry number and I might make yummy pips very soon.
Here is how it went and how I’m planning to exit:
Last Tuesday I announced on my Twitter that I’m going long the dollar against the Japanese yen at 101.818. I actually had set my entry order at that level and was doing other stuff when I automatically entered the trade. Heart beat. Will the pair continue to go down or my analysis was correct and it will shoot back up? Mr. Fibonacci didn’t fail me and held the pair around that level.
I’ve been enjoying my ride as the pair has been dancing upward on the forex dance floor* on fundamental news. More jobs were added than expected in November. It was a marginal increase, but it was enough to see the US unemployment rate fall to 7%, the lowest it has been for the five years that the world has been in financial crisis. On this news, the market now seem to think that they could start to taper this month. As such they started to buy back into the Dollar and US government debt. The question we have is whether the payrolls number and its aforementioned distortion is grounds enough for the Fed to warrant any action this side of the New Year? Some studies suggest that the pair may continue to go up through the New Year.
The possibility of a rally all the way up to the 108 area also exist, but as we always say at Invest Diva’s education course, it’s better to be safe than sorry. Remember me yelling “don’t be greedy!” in the target setting video? I had to remind myself of this video and have stuck to my exit strategy of last week.
Still have my limit order set on 103.734 which is a resistance level from back in May, especially because from a data perspective, we’re pretty light on numbers for all regions this week. The market has been consolidating today but still trading above the Ichimoku cloud. From a sentiment point, the majority of traders are short the pair which could be an indication of further bullish bias if we consider this signal as a contrarian indicator. In case I won’t reach my target by Thursday, I will be watching the pair during the only real key US data, the retail sales, and make some adjustments to exit with profit.
Any suggestions as to what I should buy with my newly earned pips this week?
* “Forex dance floor,” is an Invest Diva metaphor used both in the book Invest Diva’s Guide to Making Money in Forex published by McGraw-Hill, and the Forex Coffee Break with Invest Diva’s education courses.