AUDJPY - Long Trading Idea on the 4h Chart.
Introduction:
This is mainly an update on the idea posted on April 25th. Please read the entire post before considering taking action.
AUD moves have been mostly fueled by news, while still respecting technical formations and being confined in a range-bound environment since the start of 2019. By this weekend, since Trump's impromptu tweet about the US-China trade wars, AUDJPY took a hit as AUD suffers whenever China receives bad announcements and JPY rallied all across the board, making for very big weekend gaps.
With that in mind, the Reserve Bank of Australia is set to decide whether to cut its interest rates down to 1.25% or to keep them at 1.5% in a couple of hours from now. A lot of speculation for both biases can be found in abundance over the Forex News outlets.
Said that, we trade the most likely scenario and we trade what we see. The path of least resistance is status quo, and as a correction on JPY is due, we believe a long order should be placed.
If the news come out bearish, our trading plan will follow the dotted arrows.
How to Proceed:
A long was opened here.
Take Profit:
This long has 80.000 as its main take profit target. This can be dynamically changed, i.e., according to live price action, should circumstances change. The arrows and horizontal levels are great indicative, though.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are 77.000.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
This is mainly an update on the idea posted on April 25th. Please read the entire post before considering taking action.
AUD moves have been mostly fueled by news, while still respecting technical formations and being confined in a range-bound environment since the start of 2019. By this weekend, since Trump's impromptu tweet about the US-China trade wars, AUDJPY took a hit as AUD suffers whenever China receives bad announcements and JPY rallied all across the board, making for very big weekend gaps.
With that in mind, the Reserve Bank of Australia is set to decide whether to cut its interest rates down to 1.25% or to keep them at 1.5% in a couple of hours from now. A lot of speculation for both biases can be found in abundance over the Forex News outlets.
Said that, we trade the most likely scenario and we trade what we see. The path of least resistance is status quo, and as a correction on JPY is due, we believe a long order should be placed.
If the news come out bearish, our trading plan will follow the dotted arrows.
How to Proceed:
A long was opened here.
Take Profit:
This long has 80.000 as its main take profit target. This can be dynamically changed, i.e., according to live price action, should circumstances change. The arrows and horizontal levels are great indicative, though.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are 77.000.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Trade active:
As expected, 60 easy pips caught. We are keeping the second half until the very top of the channel. Stops moved to entry.
Trade closed: stop reached:
Stops moved to entry and triggered.
