AUD/JPY trade: Risky longs in play
I’ve got a relatively small long position here at 80.68 with a 40 pip stop-loss and I will look to add to the position above 80.80 and again above 80.95. My motivation is stop-loss orders; there are sell orders in USD/JPY near 79.00 but there are also large stops from option players at various levels above there. Similarly in AUD/USD, there are plenty of sell orders above 1.0300 but also reportedly large stop-loss buy orders above there. The professional market is already short AUD but the recent strengthening in Asian currencies must surely be worrying them? With regards risk from today’s RBA minutes, the market is already pricing in a 90% possibility of a rate cut next month so there’s really no upside for the doves and plenty of potential for disappointment. I think it’s a reasonable risk-reward trade.
Sean, I long AUD/NZD post lower NZD inflation data @ 1.2575. Do you know what is the next tech resistance?
Hi Jason, very strong resistance at 1.2575 https://www.tradingview.com/x/ez2DvX6M/ but if it breaks then only minor resistance at 12605 en route to 12700 again imho
Thanks a lot Sean. Will cut it to a smaller size.
Hi Sean, USD/CAD 4 hour chart looks quite interesting. What do you think?
Good idea Jason, if it breaks clearly then you can always add to the possy
Hi Mika, possible that wedge pattern has broken and we now see move to 9950ish?? https://www.tradingview.com/x/4W4Au9R2/
Morning Sean,
Nice to see that you change your view from dovish tone on AUD/JPY (last week at 80.40) to bullish tone ;-). What can’t go down must go up.
Too right my friend, you gotta be flexible in this business:)