Trading Gap on EURJPY this evening was as simple as knowing that the markets gapped down and then identify an entry point.
If you saw my video from this morning, 7/12/15, I warned everyone in the Market Overview video that the markets would likely gap because of the Greek issues. They did. The EURUSD and EURJPY gapped down over 100 pips — easy pickings for experienced traders because markets do not like gaps.
As you can see from the chart below, I entered long on the EURJPY and exited with 56 pips of profit per contract. (Did the same on the EURUSD as it gapped down over 100 pips, as well).
Trading Gap on EURJPY
This is not my normal entry but 100 pip gaps are not the norm either. Gaps typically occur when there is significant events over the weekend, ie whether Greece gets an additional bailout or is forced to leave the Euro Zone. For the last three weekends we have had major gaps and, again, I warned everyone earlier this morning that we would probably have some. I am a trader and when I know the market is going to move, I am more than willing to be in front of my computer and look for a setup. That is what I do — I am a trader.