On 13 Mar 2012, Bank of Japan (8301) Governor Masaaki Shirakawa indicated that his central bank will keep using monetary policy as a tool to tackle deflation.
[Source: See post on Bloomberg here on this]

“It’s meandering a little at the moment, but the trend is clear,” said Neil Mellor, a currency strategist at Bank of New York Mellon Corp. in London. “If the U.S. economy continues as it has, you’ve got a very clear case for further dollar-yen strength. We’ve gone from the position of Japan being a safe haven to now when I think people are genuinely worried about the yen and its stability.”

Futures traders increased bets the yen will decline against the dollar. The difference in the number of wagers by hedge funds and other large speculators on a decline in the yen compared with those on a gain — so-called net shorts — was 42,380 on March 13, compared with net shorts of 19,358 a week earlier, figures from the Washington-based Commodity Futures Trading Commission show.

Based on the chart on the right, USD/JPY had been on a steady uptrend clearing over 350 pips in two weeks.

Looking at that trend and other indicators, it is likely to continue uptrend with some pullbacks.

Hence,  I went long on this as its price had bounce off the support level at 83.16.

The position I am taking on USD/JPY is:

Entry price: 83.30
Stop loss:     82.75
1st profit:     83.85
2nd profit:   84.40

Hopes this do well for me as well.  Stay tuned.

To Your Trading Success,
Keith Choy

It was a rocky journey since my last update.  

Today, my 2nd stop loss kicks in to close this position at 1.2095 after it peaks at 1.2112 (just a bit shy away from my 2nd target of 1.2150 … *arrghhh*). Well you win some, you lose some.

See the chart of EUR/CHF.  You get its latest EUR/CHF chart here from Yahoo:

So in summary, my results for this is:

• 1.  Long EUR/CHF at 1.2030 on 31 Jan 2012
• 2.  1st exit (as planned) at 1.2090 on 7 Feb 2012 with 60 pips gain
• 3.  2nd exit (not planned) at 1.2095 on 10 Feb 2012 with 65 pips gain
  .

Not bad for a 10 days ROI if you ask me.    I will be looking for more opportunities again.  So stay tuned to this blog.

If you have any comments just post it below.

To Your Trading Success,
Keith Choy

Today is the first post of my Forex Trading Results.  Will be tracking this over 1 year and hopefully by doing so, I learnt a few do’s and dont’s  and hopefully you gain from it as well.

Wow, it was a volatile week.  Since my last post on 31 Jan 2012 for Forex entry point for EUR/CHF, this currency had hit my first exit point of 1.2090.  I will be tracking to see if this will hit my second exit point of 1.2150.  See the chart below (chart from Yahoo Finance) as at 11:32am EST  7 Feb 2012. 

The summary of my results as follow:

1. Long EUR/CHF at 1.2030 on 31 Jan
   - 1st exit at 1.2090 on 7 Feb
   - In progress for 2nd exit or stop loss

To Your Trading Success,
Keith Choy