Forex Trade Ideas: Watch USDJPY, AUDUSD Correction
I remain short the Japanese Yen, but the risk of real correction suggests that adding to the position or opening fresh longs will have to wait.
My colleague Jamie Saettele has a pending USDJPY short order in play, though given the longer-term nature of my trade idea I'd prefer to simply trail my stop on my existing long position instead of going against my broader bias.
I'm otherwise watching the Australian Dollar with interest. The pair spiked sharply higher at Sunday's open and has yet to break above said peak. Continued failure would set up a good shorting opportunity, in my opinion, but first I'll wait for a turn in retail FX trading sentiment (the SSI).
--- 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.