Our Forex Automated Trading Signals sold the Australian Dollar against the Japanese Yen using the long term “Momentum1” strategy. At 88.23 the system decided that due to the downward trending nature of the pair that such a trade would be appropriate. A trailing stop at 91.2804 was also placed, allowing roughly 304 pips of breathing room before any losses become realized. Currently the AUDJPY is trading at 88.26, making this trade more affordable than when it had been originally placed. Fundamentally speaking, the trade may be sound as the Reserve Bank of Australia will probably continue to aggressively slash rates as the South Pacific economy continues to flounder. This series of cuts may also be met by a passive Bank of Japan that is unlikely to lower its overnight rate. As such momentum should be favoring the Yen relative to the Australian Dollar. Momentum1 has an average per trade earning of 43.94 pips.
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