MARKET PHASE OANDA:CHFJPY is in a long term downtrend (daily) with a short term corrective structure that has been taking place (4 hour).
AREA OF VALUE Price continued to break new highs within this corrective structure. Eventually, price reached an area where sellers stepped in, resulting in a buildup of liquidity (buy stops, longs, short stop losses) above the corrective structure swing highs. During London session, price violently moved up to trigger the buy stops (liquidity) to pair against the sell orders needed to take price down. Price has started it's initial move down but due to the velocity of the downward move, it's gapped some orders around 170.280. Price has retraced to this level to capture additional supply.
TRADE I have entered short on OANDA:CHFJPY with the following parameters:
Sell Limit: 170.280 Stop Loss: 170.490 Take Profit: 169.860
Target was reached, take a look at the 15 minute chart and you’ll see when I entered (prior to rate announcement), price went in my favor and hit the target. Trade closed. Then it reversed
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Stop loss hit? Should have waited until the rate decision. Price could go higher to 170.95-171.28.