20/5 – Trading Round Numbers in FX markets, e.g.: USDJPY 121 handle

Pretty tight day today.  Maybe because it was a large moving day yesterday and maybe because of the FOMC minutes tonight – who knows!? Anyways, for me I started off with three small losing/scratch trades on EURUSD and DAX thus far this morning.  I managed to come out of all of them fairly quickly thus saving myself from full losers.  I only risked 0.5R on the DAX trade because it was against the 1H trend.  It’s very interesting that I seem to be eager to risk less than 1R when I am trading profitably.  Surely I should be considering risking a little more when trading is going well?

USDJPY 121 handle

A thought on tackling “Double Zero” levels or “handles” on USDJPY.  Or more generally speaking, I am sure it would be possible to be a full-time trader on solely trade the round numbers on the major fx pairs.

USDJPY May20 (the 121 handle)

And here’s the USDJPY chart again – though this time with two executed trades – both were betting on the push through that 121 handle – the first one failed, the second one worked.  In trading USDJPY I also kept an eye on Cable, EURUSD and the US Dollar Index.

365-366 USDJPY May20

Of course, naturally dollar-yen just kept going after I took a snapshot of the chart.  It’s now trading 121.30 – LOL!

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