Both my AUD/JPY & AUD/NZD short positions saw another boost in forex volatility in my favor, and with both testing strong support, I decided to take profits ahead of the weekend.
Original Trade Idea: Forex Trade Idea: Short AUD/JPY
The Aussie sell off continues now that it seems like the whole world is in fear mode before closing out this trading week. And with fear mode in full effect, the Japanese yen is benefiting as traders sell out of high-yielders and buy back low yielding assets.
For AUD/JPY, this meant an additional 100 pips to the downside since my last trade update and adjustment, nearly reach my adjusted profit target at 89.50. With the weekend quickly approaching (and the market testing a recent swing support area), I’m not gonna risk the whole trade for a few more pips, so I decided to take an easy profit on this trade into the weekend by closing manually at 89.62
Total: +237 pips/ +0.17% gain
Original Trade Idea: Forex Trade Idea: Short AUD/NZD
AUD/NZD is in the same boat as AUD/JPY above with the Aussie taking the big brunt of risk-off sentiment; oddly enough, the Kiwi is finding some broad strength today (possibly on today’s positive NZ credit card spending data). Whatever the case may be, the pair’s bearish behavior since bouncing lower off of the top of the channel continued, and like AUD/JPY above, the market is now testing a minor support area. I decided this was also a great time to take profits going into the weekend, so I closed out this trade manually as well at 1.0952
Total: +198 pips/ +0.165% gain
Overall, nice gains on some pretty text book trades–and taking off risk will make for a nice, relaxing weekend. Thanks for checking out my forex trading blog and I’ll catch ya next week!