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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:
  • RT @michaeljburry: Read thread.
A Very Selective Short Opportunity in AUD/JPY

A Very Selective Short Opportunity in AUD/JPY

Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • "Suspicious" Downtrend in AUD/JPY
  • Consolidation Following Recent Gap Down
  • How to Mitigate Risk When Shorting AUD/JPY

Markets have been left largely in disarray with weekend gaps further muddying the waters after a very fast-paced Friday session. As a result, today's trades are likely to be lower probability in nature, and there are no clear shots to be taken on any of the hourly charts. Nonetheless, AUDJPY may present a short opportunity later in the trading day on the 15-minute chart.

The four-hour chart of AUDJPY (see below) shows a somewhat suspicious downtrend in progress. It is worrisome because of a relatively sharp rise on the daily chart of late, which suggests choppy price motion ahead. Nonetheless, this trend should prove sufficiently robust to support a 15-minute trade.

Guest Commentary: Apparent Downtrend in AUD/JPY

An apparent downtrend on the 4-hour chart of AUD/JPY is somewhat suspicious due to a relatively sharp recent rise on the daily chart.

On the below hourly chart, price has been consolidating sideways ever since the gap down, and AUDJPY could well try to close the gap in early-Monday trading before continuing down. Should this happen, resistance in the form of the declining trend line will be met. This, in conjunction with several horizontal levels, gives a resistance zone between 90.79 and 91.04.

Guest Commentary: Gap in Play on Hourly Chart of AUD/JPY

AUD/JPY could soon fill a recent gap on the hourly chart before heading back lower off of a narrow overhead resistance zone.

This zone is merely 25 pips deep, which represents extremely small pip risk. That’s appropriate for a day where choppiness is likely to reign. Conservative traders might even be well-advised to take half the usual risk in calculating a position size.

Nonetheless, the best entry for this trade is on the 15-minute chart (see below).

Traders will readily note the choppy price action on this time frame, and some may fear that AUDJPY may even fail to rise as far as the key overhead resistance zone. However, it is far preferable to be unable to trade in this environment than to set a resistance zone that is too close to price and can easily be stopped out.

Guest Commentary: The Ideal Time Frame for Selling AUD/JPY

Utilizing the 15-minute chart and a narrow zone of risk helps mitigate risk when shorting AUD/JPY in the prevailing choppy conditions.

If AUDJPY does manage to reach the designated area, two or three attempts can be made to get in on a short trade, which will have nearly 75 pips to run (or perhaps even more, depending on the trigger) just to reach the previous low. This will provide decent risk profile and sufficient justification for taking the trade.

Viable trade triggers would include the usual suspects: pin bars, bearish engulfing patterns, or bearish reversal divergence on the 15-minute chart of AUDJPY.

By Kaye Lee, private fund trader and head trader consultant,

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