As I predicted yesterday, gbp/jpy in deed had a short term reversal today. However, the pair broke the support of 137.90 way before the news of Consumer Price Index was released. When you expect that a market can do such a thing as it did today you may trade it in a different way. You can still a sell stop order below a support (or a buy stop if you expect the market to go up), but place only half a position. In this way you would risk less and if the market does break your marked level, you will be in the market and make a profit.
I am pretty glad that eur/usd and eur/cad did go up as I predicted too. Remember, you always have to trade in the direction of the move (trend) and never against it. I know some folks out there teach how to trade counter trend moves, but why you should do that if there is much more ‘meat’ in a trend than in a counter trend. So, when you see a move, wait for some retracements and those counter trend moves and then get back into the market. Go with the trend as it is pretty stupid thing to blow against the wind (and do other things against the wind). Good luck in trend trading.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.