And I’m in! I tried to catch a quick pullback to the broken trend line on AUD/JPY and I’m setting my sights on the yearly lows. What do you think of this forex setup?
As I’ve mentioned in my previous blog post, I wanted to hop in this potential AUD/JPY reversal, as fundamentals are lining up for a downtrend. Earlier this week, China released a downbeat trade balance, reflecting a sharp decline in domestic demand. This could spell weak prospects for Australia’s raw material commodity exports.
Speaking of commodities, iron ore prices have slumped to record lows this week as well, which might translate to falling revenues for Australia’s mining industry. Looking ahead, the Land Down Under has its employment report up for release tomorrow so I’m gonna be reading up on Forex Gump’s Trading Guide and watching this forex position closely then.
I wanted to short right on the 89.00 major psychological resistance around the broken support area but my sell order wasn’t triggered so I just jumped in at market around 88.20. I set a wide stop past the previous swing high and I’ll be aiming for the 83.00 levels as my ultimate profit target. Of course I’ll be ready to exit early if needed or add to my position to press my advantage if fundamentals and commodity trends continue to move in my favor.
Here are the details:
Short AUD/JPY at 88.20, SL at 90.70, PT at 83.20. I risked 0.5% of my account on this short forex position and y’all better read our risk disclosure if you’re looking to join me.
Do you think the Aussie will keep selling off for the rest of the year or will risk appetite push it back up? As always, I’d love to get your feedback on my forex setups!
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