Made profits on my AUD/JPY short much faster than I thought, so I decided to lock in profits for now and re-assess the pair’s downside potential Here’s a quick review!
After just over a week of being open, my short position in AUD/JPY caught a round of good luck with the pair dropping as much as +300 pips since last Thursday. I can probably attribute this a bit to some dovish comments from the RBA Governor this week on the future outlook of potential rate hikes , but almost more certain of the strong move lower is the global risk-off vibes we’ve seen all week in the equity markets that’s pushing traders out of high-yielders and into safe havens like the Japanese yen.
Often times, moves like this can have sharp recoveries, which has burned me in the past. I don’t know if this is another one of those times, but I’ll just go ahead and lock a profit and re-assess the current situation. To me, that takes away the risk of losing my gains, and I still have the option to jump in short again if the momentum is still clearly to the downside. So this morning I closed my position at market (85.12) for a nice, quick return-on-risk:
Total: +285 pips/ +0.91% gain on 1.00% risk
Since closing, it looks like the pair has broken down further and global risk-off sentiment has picked up, so I’ll continue to have a downside bias but with the weekend here, I’ll take a quick look at all of the pairs before hopping back into the currency market next week. Until then, stay tuned, have a great weekend….good luck and good trading!
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