Daily Trading Strategy Report: AUD/JPY - Ojective Met: 135 Pips Profit!

Written by www.imperialFXonline.com

Objective Met: Further consolidative move below 84.77

Time: May 14 2010, 09:43GMT

Rate: 82.50
Strategy: Target Met
Position: Short at 83.85
Target: 82.50
Stop:

  • Outlook remains mildly bearish as long as 84.77 resistance holds
  • A breach of 81.97 encourages further losses to 81.00 and then possibly 80.00



Aud/jpy's retreat from Monday's high at 84.77 (just below the measured fibonacci retracement level at 84.82) is keeping price under pressure these days especially with the increase in risk aversion and although the bounce from Wednesday's low at 82.21 suggests choppy sideways trading is seen in the near term, falling daily MACD and moving averages should a bearish outlook prevail for another decline and below 82.21 would lead to further losses to 81.97 and then 81.00 before prospect of a rebound due to short term exhaustive oscillators.

We are continuing to hold our short position and the stop is now moved to 83.35 to protect some of the profit. On the upside, only a breach of 84.77 would defer this bearish scenario and risk an upmove towards another fibonacci retracement level at 85.95 instead.

Written by www.imperialFXonline.com


High Risk Warning: Foreign exchange trading on margin carries a high level of risk that may not be suitable for all investors as the degree of leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, level of experience and risk tolerance. You could sustain a loss of some or all of your initial investment and hence you should not invest money that you cannot afford to lose. Be aware of the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Website owners and affiliates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.