Cross-Eyeing: AUD/JPY
I don't currently have a trade idea for Currency Cross-Eyed at the moment, but here is a great looking chart for all of you range players out there. Check out the chart and you can see AUD/JPY at the top of the channel drawn on the daily. Usually, I only go long on pairs that have a positive carry, but with the pair at top of the channel and Stochastics in overbought territory, we may have a great short opportunity on our hands.
I will be looking for the pair to break below the previous day's low at near 91.80, but we will definitely wait for price action to confirm a possible move down. Until then, stay tuned for a trade idea or any other great looking opportunites the market may give us!
Related Posts:
- Cross-Eyeing: AUD/JPY - Trade Idea 08:24 20 December 2006
- Cross-Eyeing: EUR/CHF - Trade Closed 03:00 06 June 2007
- Cross-Eyeing: EUR/CHF - Trade Closed 22:22 22 July 2008
- Cross-Eyeing: CAD/JPY - Trade Closed 01:30 09 January 2007
- Cross-Eyeing: EUR/CHF 23:47 28 November 2006
Archived Comments (3)
Forex Blog: Currency Cross-Eyed
Thanx for your analysis. How about USD/CAD? On daily chart bearish divergence is being formed. On 4h chart stochastics show overbought. What do you think about shorting this pair?
Maatej
I do like a short in USD/CAD. On the monthly chart it seems to have returned back to the 20 SMA giving it fair value. If the pair breaks below the previous day low, I would go in and target 1.1431 - 50% fib retracement line of it's most recent move - and place my stop near the high of the previous day.
Hope this helps Maatej!
I don't like trading against a very strong trend, especially with strong Australian fundamentals, more rate increases? and a sluggish Japanese economy. Either buy an entry after a recent top or I'd love to carry this trade off a retracement with a limit buy at the uptrend channel, with a stop 50 pips below the bottom uptrend channel.
We'll see after the close of business tomorrow with BOJ rate decision. I think the bond markets are favorable to maintain status quo BOJ rates and further AUS strength.