Feb18 – Short USDJPY S2S & zone reversal

Technically, I am in the middle of writing up the zone reversal strategy, so I shouldn’t really be taking trades on this pair at this stage.  However I spotted a very solid 1-2-3 pattern on the 15M chart, which I decided to short.  In addition the pair is also in a S2S environment, with price rallying strongly and then having two candles showing bearish momentum, which comprises a valid setup.

Things speaking against a trade:

1. The strategy for zone-reversals is no yet solidly defined.

2. I traded on the basis of the big red candle that broke out of the consolidation zone and shorted at 102.295, after price had retraced a little.  In other words, it gave me a better entry.  However I sold into bullish momentum, when really I should have waited a bit longer, basically until I had a further bearish candle on the 15M chart.

3. In terms of S2S, I am trading two weak (according to the STAM matrix) currencies against each other.

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