This morning in the coaching sessions, out of all the currencies, trading EURJPY and GBPJPY would be the best because they had the best potential for the trade setups. When we went down to the 15 minute chart, I taught traders how to setup an alert on where I thought the entry would be. This way if the trade came in, then they would be notified and could enter.
Trading EURJPY and GBPJPY
On the EURJPY, the alert was around 121.50. As I mentioned, I would not be trading it because I am not trading today, but if I did, I would not pay more than $35. (The Euro Minimum Bid Rate was at 7:45 followed by a press conference later.)
As you can see below, the alert was triggered prior to the announcement. Then it initially went down and back up. The first area of resistance was 23.7 pips from the entry line with a potential to move up through the other lines.
On the GBPJPY chart, the brown line shows where the alert line was and it was never touched. At the time, the premium was about $41 or $42, which I considered expensive.
I did do one additional trade on the GBPUSD. In this case, we were expecting price to go down and we were two bars late in the entry. We expected price to go below 1.2686. The next bar formed bullish indicating a pivot low formation and we minimized our risk from $35 to a loss of about $15.
More importantly, the analysis that we did at 6am this morning indicated that today was not the ideal day for trades. That means by opting to do other things, we reserved our capital for another day when the setups are clear, like yesterday.