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AUD/JPY bulls did manage to get one more push higher, but were met with bigly resistance & a reversal soon after. With the BOJ coming soon, I thought it was time to make a quick adjustment.

Trade Adjustment: Short at Top of AUD/JPY Range

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

I zoomed into the four hour chart above for a clearer picture on price action, and we can see that since my initial idea post, AUD/JPY did make one more move to the 84.00 where I place my short orders. After being triggered there, it’s been all about the bears, likely on the broad risk aversion sentiment sparked by global trade concerns and possibly on sellers waiting to play the major resistance area once again.

And so far so good with the pair now trading below the 83.00 handle (and a current gain of 0.314% or 0.62:1 R:R) , but with the Bank of Japan set to discuss their latest monetary policy thoughts and decisions very soon, I’m making a quick short-term adjustment to my position.

Closed half of my AUD/JPY position manually (82.87) & rolled down my stop from 85.80 to 84.80

This reduces my max risk down from 0.50% to actually a locked in profit of 0.04% because of the 0.15% gain on the closed portion minus the now 0.11% risk on the remaining open position. Nothing like creating a “risk-free” trade position, right?

It’s all gravy from here unless we get a major catalyst and gap in price–which is not likely to happen–and I do have the option to add back later to open up my max profit potential after I see what the BOJ and the market gives me.

Personally, I think the event will likely be a snoozer like it normally is. While the data has been good enough for the BOJ to ratchet down their ultra easy monetary policy, concerns of the economy topping and what tools the BOJ will have if another recession hits will likely keep their tone neutral, or at the very least, away from hinting on any possibility of rate hikes just yet.

 

So, stay tuned for possible further adjustments to my position after the event, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

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