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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!

AUD/JPY 4-Hour
AUD/JPY 4-Hour

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!

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.