Administrative, you can see that we clearly have a significant support level at the 78 handle in the AUD/JPY pair. Because of this, it appears that we have had several bounces from this level, and that’s what I’m basing this trade upon. With Nonfarm Payroll coming out in a little over 24 hours, I’m basically assuming that the market will be fairly straightforward. As a switch down to the one-hour chart, you can see that we formed a hammer 2 hours ago, and have broken cleanly above it. I’ve entered the market at 78.594, and I’m aiming for the 78.99, with the stop loss being a fresh new low in the form of the 78.15 level. Also, looking at the 4 hour chart it appears that we are trying to form a hammer which of course is a bullish sign. If we were able to break down below the 78 handle, that would actually have me reentering the market to the downside as it would be a significant breakdown. A couple hours into the trade we have formed a hammer on the 4-hour chart from the candle that we traded off of, and were forming something akin to a hammer on the next 4-hour candle. Because of this, things look good and therefore I’m willing to drag my stop loss to higher levels, just below the hammer that got me interested in the market in the first place. While this doesn’t guarantee a profitable trade, it takes off some of the risk. With fact, I moved my stop loss to the 78.25 level. Keep in mind that I may have to close out this trade before the Nonfarm Payroll number as there’s no need to have the volatility take you out of the market when you were initially making money.

In this video, I’m looking at the British pound on the 4-hour chart against the US dollar. You can see that we ended up forming a shooting star right at the gap from the beginning of the week, and that of course shows a significant amount of resistance. I’m going to go ahead and short this market, and put a stop loss just above the top of the shooting star on the 4-hour chart and the 1.3550 level. I’m going to aim for the 1.3150 level for the target. The 1.36 level is where the gap started, so instead of putting a stop loss there, I am being a little bit more aggressive. The trade actually went quite a bit in my favor for some time, but on the 30-minute chart you can see we have bounced drastically. Because of this, I feel that it’s probably time to place a stop loss with a little bit of profit lock then, as it seems like the volatility is going to continue to be very strong. I’m putting my stop loss at the 1.3355 level, as it is above the recent high formed on the short-term charts and of course the 61.8 Fibonacci retracement level. At this point in time, I feel it’s better to take a small profit than let this market turn back around on me. Typically, I have found that the 61.8% Fibonacci retracement level been broken to the upside this shows that we’re going to do a complete retracement. Because of this, I allow that area to act as a last barrier and go to bed

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