May 08 2008
USD/JPY: Shifting My Forex Positions a Bit
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Strictly on a short-term basis I’ve done a position flip. I’ve closed out my short EUR/JPY position because it’s looking like that pair is ready to take a break. It’s near important support and very stretched on a near-term basis. I’ll be looking for a good opportunity to get short again either on a rally, or a break through the support.
I’ve also taken a long position in USD/JPY. It’s pulled back from the recent highs, but today put in a rejection low. The daily chart trend is clearly higher, so I put on a trade that gets me in at a very nice risk/reward point. I’m risking about 50 pips to make 200 pips, and potentially more, in a swing trade type of timeframe. USD/JPY could easily rally to 106 in the next few days. If it gets up into the area of the mid-late January range (about 106-108) it could even run right up through.
I still like the AUD/USD trade I’ve mentioned, but obviously doing it would require ensuring I don’t get over exposed to the USD.
Here are some other posts which might interest you:
- NVR: Reason to be VERY Bearish
- Come, Bask in My Greatness
- Trimmed My EUR/JPY Position a Bit
- Aussie, Gold, and Stocks
- EUR/JPY: Waiting Paid Off
