Sterling traded to a 2.0068 high right on the London open. We were long at an approximate average of 2.0027 giving us about 40 points of profit in the trade before dollar buyers stepped up and sent the British pound right back where it came from. As I mentioned earlier this week, this market is certainly on the move. But the key to success in this market is to remain extremely nimble. I have traded more actively in the past week than I have in years with some nice success. I am hitting close to 85% success rate in here. Yet, when I sit down every morning to write this column, I have to be honest with you; I am having a very hard time seeing trades more than 5 to 6 hours ahead of time. Usually, I have no problem with it. It could be that I'm getting too close to the price action in here, or it could be that the markets are extremely whippy as the dollar is breaking to significant levels . I believe it's the later.

What does this have to do with you, the reader? Not much, really. But this kind of introspection is how trader adapts to the ever-changing markets. I highly encourage you to step back from platform every now and then and objectively take a look at your place in the market.

Now, to business at hand. I am loaded up to lean into USD/JPY figure resistance with offers to sell 118.98 with 119.15 stops. If I am stopped out there, I will resell into 119.20-30 with stops above 44. If you would like, you could stretch this position out and trade fewer lots with your stop at 45. You could offer a single at 98, a single at 20, and another at 35, with 45 stops. But, considering the market's active price action, and if you have the time to watch the price action, it might be better to trade them separately and book profits as they are given to you.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.