Forex Strategy Video: USDJPY - When to Hold or Fold Over the Weekend
• A meaningful trendline break and exposed risk backdrop present an attractive USDJPY beartrend scenario
• For USDJPY, the possibility of a Government Shutdown resolution risks a chance of a bullish gap
• When determining whether to hold a trade or cut over the weekend, event risk and time frame are key
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Will the US Government end its budget standoff over the weekend? There was little news into the close to suggest they would, but the risk to my USDJPY was too great for me to hold the position. Exposed to both a rebound in risk and the dollar should this fundamental consideration be resolved, prudent trade management suggests it is a smarter choice to not hold the trade over the weekend and instead reenter on Monday should conditions still support the trade. In today's Forex Strategy Video, we discuss when it is better to hold or cut a trade when coming to the weekend.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.