Choppy EUR/JPY just couldn’t get momentum
So the first trade of the month didn’t quite give me the result i wanted as i took a small 0.5% loss today. The setup itself was a very clear and valid opportunity but of course not every trade can be a winner! Following the long run up our daily chart had run in to some resistance and showed signs of deceleration in the price action leading in to this area. To add to the price action we also had bearish RSI divergence which gave additional clues that a downward move was due.
On the intraday charts we had a nice breakout occur from the days low during the US sessions with a clear close below the support level, this gave the entry. Unfortunately the trade never really got going and just became very choppy as you can see from the image below. Keeping with my strict risk management rules i followed the position closely and eventually came out with a tiny loss of 0.5%.