07/23/2009 GBPJPY Trade 2

I haven’t traded one of these in awhile.

Long 1 lot (100 units) GBJPY @ 5667
Stop @ 5438 (-229 pips)
Take Profit @ 6667 (-1,000 pips)

Confidence Level: 5/10

Reason to take trade: Surprise box

Click above for larger image

I was apprehensive about this trade because price really seems to be respecting the bottom of the channel on the daily chart. Also, the surprise box is below the 800 SMA. Usually surprise box trades work better when the 800 SMA is in the center of the box. I liked the fact that price was testing the top of the box, that is a low risk entry.

Price action wasn’t very strong to the upside so I closed the trade early at 5679 (+12 pips). I may consider only taking surprise trades after they have tested the box and put the stop below that level.

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