This pair resumed its selloff and came within a hairline close to my target before popping back up and hitting my adjusted stop.
Short AUD/JPY Idea
In my previous update, I highlighted a bearish flag formation at the middle of the descending channel, which did serve as a continuation signal.
Price tumbled to the channel support I was looking at when risk-off flows stayed in play for the most part of the week. It even got another push lower when the Japanese yen rallied after the NFP release.
However, the 82.00 handle held up really well as a floor. Even though price gapped down over the weekend, the pair managed to make a sharp pop higher when iron ore prices recovered.
Good thing I was able to adjust my stop loss down to the 82.75 mark to lock in some gains in case this happens. Phew!
Here’s how it all turned out:
P/L: +50 pips / +0.37%To be completely honest, I’m a bit bummed out that I wasn’t able to catch more gains on this one since price already dipped to lows around 81.90. In hindsight, I probably should’ve closed early when the 82.00 handle refused to give way.
But oh well, a win is a win! I’m still gonna keep an eye out for this descending channel setup because I’m counting on a bit more AUD weakness. Of course this depends on how this week’s set of catalysts play out and if risk aversion returns!
Got any comdoll setups you’d like to share with me for this week?
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