I’m looking to build a long-term bullish position on the AUD/JPY. In saying that the market has given me an opportunity to go short first with a good risk/reward ratio.
I have gone short at 95.059 and will be looking to buy back at a larger size when I see a bullish reversal.
Reasons for the trade:
- I am long term bullish AUD/JPY so if I can get some short term profits I can build a bigger position.
- Further to Sean Lee’s post the AUD/USD pair is likely to range trade this week (meaning the crosses may too, giving me an opportunity to trade the sideways market type).
- Our signal provider 888 is short USD/JPY, which is supportive of the sell AUD/JPY trade.
- Stop is at 95.29
- If I see a reversal I will quickly take any profits or get out.
About the Author
Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders. He is a key team member at premium FX services provider www.fxww.com and part owner of Forex Signal Provider www.fxrenew.com (You can get a free trial). If you like Sam’s writing you can subscribe to his newsletter for free: https://fxrenew.com/newsletter-sign-up.
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