Caught in the bull trap – closed both Yen trades, -143 pips total

7.59 gmt

The action after the BoJ event was a classic bull-trap. After surging to a high of 90.15, it reversed viciously down below 89.30 in about 2 minutes. EURJPY followed, fortunately not in turbo mode as EURUSD was rising. I held my nerve and didn’t get out at the absolute lows as I often do, but this action has done serious damage to the bullish picture. Both pairs will need some time to rebuild the bullish bias, and they may likely plumb new lows in the US session. I have therefore closed both long trades as follows:

Closed USDJPY at 89.05, -78 pips, -7.7%.

Closed EURJPY at 119.02, -65 pips, -6.0%.

I will likely enter from the short side if I get a good level and if the price action is supportive.

8.09 Edit:

Damn!! Both pairs have added over 10 pips in the few minutes after I closed!

I need to recite my Zen mantra to calm down and not get angry at the market, or just plain angry 😉 .


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s