Forex Trade Review: AUD/JPY Head and Shoulders

‘Twas a pretty solid start for me this year, as my decision to re-enter my short AUD/JPY forex position from last month allowed me to bag more pips from my bearish bias!

As I’ve mentioned in my trade idea blog post, I decided to hop in on a break of the head and shoulders neckline around the 86.00 handle and set my sights on the 83.00 support area. And thanks to the overall risk-off sentiment in the financial markets, combined with downbeat Australian economic releases earlier today, the pair eventually hit my profit target.

AUD/JPY 4-hour Forex Chart

AUD/JPY 4-hour Forex Chart

Since I had a wide stop at 89.00, I only managed to make a 1:1 return-to-risk on this forex setup… but I ain’t complaining! Not bad for a short-term trade, eh? Here’s how it all turned out:

P/L: +300 pips / +0.50%

Given the current mood of Mr. Market, I’m still bearish on the Aussie and bullish on the yen. The Chinese economy hasn’t been looking too good lately (again!) and it’s starting hurt their equity markets, possibly weighing on Australia’s longer-term growth prospects as well. Do you think this pair could fall much further? I’d love to get your thoughts on this!

Cheers,

Happy time

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  • Forero

    Congratulations HappyPip, well done, i think the AUD go dawn for some days more. Best Regard

    • Thanks for the kind words, I really appreciate it! Same here, I just wanted to lock in those profits on a quick trade but I’m thinking of entering another short AUD position for a swing setup. Got any ideas?

  • Aha, thanks for sharing this chart! I’ll keep close tabs on AUDCHF and AUDCAD then. Just worried because the SNB is notorious for intervening while oil prices are also weighing on the Loonie. I’ll keep you posted on my next trade ideas though so I hope to see you around!

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