Yen rose tremendously today. Could anyone know that? Maybe not, maybe yes. However, one could trade it anyway and make a profit. How do I know that? You could simply apply Forex news trading strategy for the risk event that we had today. What was it? It was Bank of Japan governor’s Kuroda press conference. Yen started rising right after that. And you could trade the rise and make money doing that.
You had to choose your favorite forex pair. That could by usd/jpy, eur/jpy or gbp/jpy. I prefer gbp/jpy to all other Yen pairs as it is very volatile and moves nicely. It also forms great technical patterns and acts well at support and resistance. Let us therefore, look at the pair and possible entries, stop loss and exits for the event.
The pair formed nice breakout pattern and stayed within it before the news event. Support was at 152.50 and resistance at 153.50. You just had to place a buy stop above the resistance and sell stop below the support with 50 pips stop loss orders. News came and support gave way. Your stop would have kept you safe. What about exit? It is always best to exit at an even number. 150 level was the best place. That’s where the pair came in a matter of three hours. Over two hundred pips of profit. Very good I should say!