No luck on this trade as Australia turned in positive jobs data to send the Aussie up higher, eventually pushing AUD/JPY up to my stop for a very small loss. Here’s a quick forex trade review.
Original Trade Idea: Forex Trade Idea: AUD/JPY Short
I shorted on the idea that the Australian jobs data may come in weaker-than-expected, but it was a no-go for the Aussie shorts as Australia printed a strong monthly employment report. That should have been my cue to cut the trade and take profits, but I held on since my trade was in the green and likely to weather a quick boost higher. Unfortunately for me, that wasn’t the case as the market kept pushing higher to hit my stop at 85.70 to close out my trade:
Total: -155 pips/ -0.50% loss
It was a small loss and again, my big mistake was probably not taking the trade off (or rolling my stop down), even for a small gain, when the Aussie numbers came out (I was up 100 pips even after the positive report). But lately, I’ve missed out on bigger moves by trailing my stop and closing out early, so I wanted to let this one ride. One more things is that it was a solid setup from where I entered, but I maybe could have waited until 85.00 was tested before entering short.
Overall, it was a solid setup that just didn’t work out, but in the longer-term, I don’t think the downtrend has been invalidated yet. So, I’ll continue to look for a short position for now until 87.50 is broken to the upside. Stay tuned!