Forex Trade Ideas: Trailing USDJPY stop, Selling AUDUSD
I think the fact that US Treasury Yields have broken decisively higher should be bullish for the USDJPY, but the fact is that we've seen a fairly bearish USDJPY reversal on the morning. This adds weight to the argument for a larger correction.
I'll trail my stop to month-to-date lows and congestion support at 86.80; I would close my position on a daily close below.
I'm otherwise interested in selling AUDUSD at these levels. I wrote the same yesterday, but the difference is that our Speculative Sentiment Index showed trading crowds were net-short. Today they've flipped back to net-long position this morning, and I think it's a good opportunity to get short.
I'll go short from current market price ($1.0450 at time of writing) or better, set a stop above month-to-date highs of $1.0525. First profit targets will be at recent congestion lows of $1.0340 and eventually $1.0250.
--- 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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