Trade Updates: GBP/NZD and AUD/JPY

So far so good on my GBP/NZD and AUD/JPY trades! With this pickup in momentum for both pairs, I’ve decided to add to my positions. Make sure you review my initial trade ideas before reading on.

Short GBP/NZD

Anyone catch that massive pound selloff last week? I actually thought that the pair already made it all the way down to my profit target but it turns out the low liquidity environment prevented some orders from getting filled. Unfortunately, the pair also missed my pullback entry at 1.7800 by a hairline so I wasn’t able to press my advantage then.

I was watching market price action just a few moments after the GBP flash crash so I scrambled to add to my position on a correction near the previous swing low. Price action was so fast, though, so I was able to get in around 1.7330. I also rolled my stop down to 1.7525 to protect my wins in my initial position.

GBP/NZD 1-hour Forex Chart

GBP/NZD 1-hour Forex Chart

I’m seeing a bit of a bearish flag on this pair right now so I’m open to adding on a break of this short-term consolidation, probably below the 1.7300 handle. After all, Brexit-related headlines could continue to keep a lid on the pound’s gains, and the promise of tough negotiations from French President Hollande suggests that the path of least resistance is to the downside.

For now, I’ve got 80 pips or 0.10% locked in with my initial position and I’ve risked 0.25% on my second position, netting 0.15% on the line for a potential 4:1 trade until that spike down.

Long AUD/JPY 

I was able to hop in this AUD/JPY triangle breakout with a nibbler position last week so I waited for a chance to catch a better price on a pullback to the broken resistance. I added to my position at 78.00 for another 0.25% risk for an average entry at 78.42 with my stop still at 75.75.

AUD/JPY 4-hour Forex Chart

AUD/JPY 4-hour Forex Chart

I’m expecting to see more yen weakness this week as bulls seem to be losing traction. For one, risk-averse traders might be transferring their lower-yielding holdings from the Japanese currency to the U.S. dollar, which is currently taking advantage of December Fed rate hike expectations.

In the next few days, we’ll get reports on Chinese trade activity and inflation, which might yield more gains for the Aussie if the results come in better than expected or at least show some improvements.

As always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

Risk Disclosure
Pipcrawler’s Q2 2016 Blog Trading Performance

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  • Mark

    Fundamentally, is there any gain possible on GBP v anything? Short term volatility aside, it looks like a long and painful path for the Pound….