News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

UK Prime Minister Boris Johnson Resigns

Forex Analysis: Closed Half of USDJPY Long, Selling AUDUSD

Forex Analysis: Closed Half of USDJPY Long, Selling AUDUSD

David Rodriguez, Head of Product

I've closed half of my US Dollar (ticker: USDOLLAR) long against the Japanese Yen, as the pair's break below ¥79.30 signals there may be further downside. I'm otherwise looking to get short AUDUSD and EURUSD at the right prices.

As I wrote yesterday, my weekly report on forex trader positioning warns that the USDJPY could continue lower as crowds buy the recent dip. We've broken below key congestion support at ¥79.30, and I've taken off half of the position.

I'd nonetheless like to buy the US Dollar more broadly, as I think the Dow Jones FXCM Dollar Index breaks above the key 10000 mark, and our crowd sentiment-based strategies have likewise gone long USD verus the Euro and Australian Dollar.

For the AUDUSD, I'll actually take a short entry at current market price of $1.0380 with a stop above key congestion highs at $1.0450. First targets are the $1.0300 mark, but I'll likely trail my stop instead of taking full profits on said position.

For the Euro it may have gotten a bit away from me. I'm looking for short-term sell targets around the $1.2780 mark, while max risk would be put above $1.2880.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES