FX Commentary 2 Aug 2012

Just want to share one of my trade I placed today on USDJPY.

USDJPY - Daily Chart

This pair has been consolidating in range between 78.00 to 80.50 since beginning of May. I have just entered long position when I saw bullish engulfing bar formed on the key support level at 78.00 in this afternoon. This level used to be resistance level in the past and it has now turned into support level. You can see how the price being rejected and pushed higher in the past around this level. The setup of this trade is as follow:

Entry                :     78.453
Profit Target     :     80.400
Stoploss           :     77.900
Reward            :     1,947 pipettes
Risk                 :     553 pipettes
R/R ratio          :     3.5

(Note: The above calculation not inclusive of spread charged by different brokers)