Ichimoku Currency Trade of the Week 1-11-13: EURJPY Long

On Jan 9, we received a Ichimoku 5 time frame Buy Email alert on the Forex EURJPY.    The email is shown below:

Since all the JPY currency pairs have been trending for a long time, we need to keep the risk low.  Also, if you look at the 4h chart, it was consolidating so the risk definitely needs to low.   Therefore, we setup for a 4h Pull back trade on the EURJPY.    The entry was 114.559, initial stop of 113.949,  and preserve mode value of 116.00.  This would be a 61 pips max risk and a min. reward of 144 pips.    This would give us a min.  2.3:1 reward/risk ratio.   This is a low reward/risk ratio.   If you were an aggressive trader you can take it but a conservative trader definitely would not.  The chart is below:

The trade triggered and we entered preserve mode too.  The current stop for the trade is 118.62.

 

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About the Author Manesh Patel