Trade Update: 2013-05-23 03:43
Just when I thought AUD/JPY could keep its head above the 100.00 major psychological support, Australia prints weaker than expected data and pushes this pair below the trend line. Not even the BOJ’s decision to keep their current level of easing unchanged was enough to keep AUD/JPY afloat!
Earlier today, China released a weaker than expected HSBC flash manufacturing PMI, which showed that the industry actually contracted in May. The reading slipped from 50.4 to 49.6 and was enough to push AUD/JPY way below the 99.00 handle, as China is Australia’s BFF when it comes to exports.
With that, I lost 155 pips and 0.5% of my account.
Do you have any tips on how I can bounce back this week? I need a winning trade!
Trade Idea: 2013-05-15 06:21
They say that the trend is your friend until it ends. I don’t know about you, but I don’t think that we’ll see the yen’s downtrend end anytime soon. After all, the BOJ was practically given a green light to continue weakening the yen!
I found my opportunity to sell the yen on AUD/JPY’s daily chart. Thanks to the RBA’s rate cut and George Soros’ billion-dollar bet, AUD/JPY is lagging behind the other yen pairs’ rallies. Right now the pair is still within a symmetrical triangle on the daily chart and is finding support at the 101.00 area.
The trade isn’t without its risks though. Talks of more rate cuts from the RBA could break AUD/JPY’s uptrend since October 2012. Not only that, but if China’s reports due tomorrow come in weaker than expected, then the comdolls could sink deeper against their counterparts.
Here’s what I’m doing with this long-term trade:
I bought at market (101.05) with my stop loss 150 pips away at (99.50). I don’t have a solid profit target yet, although I will lock in profits by trailing my stop as price goes in my favor.
Got any tips on how I can minimize my risk? Any suggestions would be much appreciated!
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