AUD/JPY bears have certainly been taken for a ride and it looks like momentum is still in their favor. In this case, I’ve gotta maximize this momentum, but of course, risk management comes first!
The Japanese yen continues on its tear since I entered short on the previous support-break-and-retest. Rising geopolitical tensions in recent weeks from the Syrian chemical attack to rising tensions between the U.S. and North Korea seems to have traders more and more nervous with every day passing. Odds are that these situations aren’t going to be resolved quickly, so this momentum into safe havens could continue.
With this short-term outlook, I’ve decided to try to maximize my potential gain by adjusting my target and adding another short position, but first a quick adjustment to my stop to keep me from increasing my max risk.
1st position: Rolled down stop on first position to entry 83.95. New target at 79.35
2nd position: Short another half position at 81.65, max stop at 83.95, max target at 79.35
No risk for my first position now and if my second position triggers, it’s still a max risk of only 0.50% total. But now, my potential reward is 3:1 on my original risk if that new position triggers.
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.