Forex Analysis:Buying USDJPY Dips, Trailing AUDUSD Stop
I wrote earlier this week in my forex strategy outlook report that I think thatthe US Dollar recovery is at risk amidst extremely low FX Market volatility. Yet the AUDUSD as respected its series of lower highs, and in fact has broken to fresh week-to-date lows from earlier in the session. I sold AUD at the $1.04 mark with a stop above $1.0480, but I will trail my stop to week-to-date highs at $1.0425.
I remain in a small USDJPY long position--I took profits on the bulk of the position about 100 pips ago and was looking to buy dips. I would still like to buy dips, but the USDJPY is showing that it may not necessarily be willing to pull back in any material way. I'm willing to buy further if we hit the 81.50 mark, and I'll likewise trail risk on the entire position below the 79.00 mark.
I'll keep my thoughts posted via the forex real time news feed.
--- 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.
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