For the past few days, USDJPY has been bouncing up and down within a small range during the Asian session before volatility increased during the European session.. Volatility increase tremendously when the European session overlap with the American session.
As usual the EURJPY lead USDPY for the breakout in the European session. Glanced to the two 30 min charts below.
The first chart is the EURJPYt. The cross bounced of the daily pivot point at 4:00 or 3:00 GMT and travelled south.
In the second chart, the USDJPY position itself above the pivot point and moved within the range of 20 pips between 94.00 and 94.20 for more than 8 hours before a sudden fall at London opening session (8:00 GMT). The nudge downward carried USDJPY to spud fibo retracement level of 23.6% at 93.57 .
As I don’t trade between 4:00 GMT to 12:00 GMT so normally during my trading session I just ride the USDJPY small range up and down nibbling between 10-15 pips for every entry.
This morning my 1 min scalp is as follows.
At 1:00(24:00 GMT) which is 9:00 am in Tokyo, USDJPY bounced from daily pivot point and the double zero level of 94.00. At 94.20 (the blue rectangle), the cross is expected to come upon a resistance level which is also a 76.4% spud fibo retracement located. A gap at 1:56 confirmed that the cross is reversing downward. 2 min later I entered short on the blue lag cross over the 85. Two mins later the B&Y turn red and 6 ema cross over the 12 ema. The spud fibo 68.1 % retracement was touched at 2:06 and a hammer candle is formed. I closed my position for 12 pips profit.
At 2:13, the B&Y and LCD turned green, 6 ema cross over 12 ema and blue lag had crossed the 15. I don’t take the signal as the red lag just crossed the 45, the BB is getting narrower, the 50 sma and 200 ema are almost flat and near to each other indicating an immediate consolidation. The sell signal at 2:16 was also ignored due to the same reason.
By 2:26 (the blue triangle area), all indicators showed a buy with the red lag above the 15. I took a long position and expected the cross to break through the BB as for the last 5 min it was flat. My profit target is at round number level of 94.20 . My profit is 13 pips.
I have a total of 25 pips and since the session is still early, I take a sell position at 3:09 with all indicators registering a sell (the green rectangle). As the market is slowly moving upward, the sell position that I took is considered a counter trend with a profit target of 10 pips. By 3:30 I get the 10 pips. I leaved my trade for a total profit of 35 pips.
