I Meant For That To Happen...

I'll be perfectly honest, I'd rather the EUR/JPY just have taken off in a straight line upward last night. But it didn't and I was well prepared for that. Just as I wrote yesterday, I was suspicious of a false break, which is exactly what happened (see chart below).

Luckily, my stop was well below that and, not only I am still in the trade, but I am averaging down by buying another 2 lots around the 133.25 level (which is about 50 pips below my initial long position). Also, the 4-hour chart (see below) shows a nice reversal candle, which is even more incentive to get involved here. Additionally, the daily chart (not shown) has not shown a break in support.

Although I don't like the drama and would have liked for the trade to have gone my way immediately, this could be even better. Since I'm averaging down, I'm also establishing a new (and higher) stop at around 131.91, therefore, further minimizing my risk.

Original Long:

Risk: 175 pips

Reward: 230 - 400 pips

Additional Long:

Risk: 137 pips

Reward: 270 - ?? pips