AUD/JPY: Taking a Chance at 97.00 – Trade Closed

Trade Closed: 2013-06-04 03:32

AUD/JPY Chart

As it turns out, fundamentals played a huge part in the strong drop in AUD/JPY. On the Aussie side of things, continued speculation that the RBA was moving towards looser monetary policy weighed on the Australian dollar, causing it to finish as one of the weakest currencies last week.

As for Japan, the yen rallied thanks to rumors that the G7 is very concerned about the low value of the yen. According to some news reports, the G7 is actually even considering intervening in the markets in order to reverse its recent down trend!

Of course, this was bad news for my AUD/JPY , and send me to my fifth straight loss.

Stopped out at 96.60: -105 pips / -0.50%

While this loss doesn’t hurt my account much at all, I am growing a little concerned about the recent state of my trading. Five losses doesn’t hurt my account, especially since I’ve been practicing sound risk management, but I can’t help but wonder… what the heck am I doing wrong?!

Have I been late to enter trades? Am I forcing my trading? Am I picking the best possible setups?

These are the types of questions I will ask myself as I review each of my last few trades. Despite the losing streak, I remain confident that I’ll knock the next one out of the park. After all, losses are just the cost of business for a forex trader. As my man Rocky once said, “it’s about how much you can take and keep moving forward! That’s how winning is done!”

If you guys have any sweet setups lined up for this week, make sure to hit me up in the comment box below, or on Twitter or Facebook!

Trade Idea: 2013-05-30 01:10

AUD/JPY Chart

With the BOJ in super-easy mode, I’ve been trying to get my hands on a short yen position for a while now. It just makes so much sense to me. The BOJ has pretty much promised to keep pumping money into the economy and has set some aggressive targets. Meanwhile, other central banks have pretty much given the BOJ the green light to keep doing what it’s doing, which I think also serves as the market’s go signal to keep selling the yen.

Anyway, after days and days of searching, I think I’ve finally found what I’ve been looking for on AUD/JPY. The pair just bounced off the 97.00 handle, which has seen its fair share of interest, so I took this as a great opportunity to buy at a bargain.

But why buy the Aussie? It’s true that it has been one of the weakest performers in recent weeks, but I think that may change soon enough. AUD/USD is already finding support at .9600, which is a MAJOR support level on the pair’s weekly chart. I think that this could be an early indication that the Aussie will make its way back up the charts soon.

So here’s how I set up my trade:

Bought AUD/JPY at market (97.65), stop loss at 96.60, profit target to be determined.

I set my stop just below the 97.00 handle since a break of the level would invalidate my trade. As for my profit target, the sky’s the limit! I’m hoping that AUD/JPY will rise back up above 100.00, but price has a long way to go before reaching those levels again, so I’ll just take my cue from the market.

What I like about this trade is that I’ll be getting positive carry on it, so I’m not afraid to hold it for a long period of time.

What do you think, fellas? Is this something you would trade? Share your thoughts and suggestions in the comment box below!


  • Rona

    100% agree with you , I took same position after Small Pin Bar on 4H , I’m Looking forward to double Bottom on 4h from this area will confirm coming up wave

    • cyclopip

      Yes, I’m hoping for a double bottom as well. Good luck to us, mate!

      • Guest

        Will it be prudent to raise stop loss now in order to lock in some profits?

  • Matt @ SmartPipping

    I am short-term buy on the AUD/JPY .. and a long-term sell. The Aussie is coming out with its cash rate decision this week. Will be keeping an eye on the statement.

  • wakaoeh

    Hi cyclopip, i feel your agony. i got stopped out of my eurjpy short this morning. my last 4 trades had were all stopped out. market has been really choppy. i need to regroup and review my trades after the recent string of losses.