I sound like a broken record.
Simply put ( for the 10,000th time ) The Japanese Yen takes huge inflows when risk comes off…..and commodity related currencies such as The Australian Dollar sell off hard.
You’ve got the best of both ( no shit sunshine ) when trading the pair – AUD/JPY….taking advantage of large moves ( in opposite directions ) of BOTH currencies.
This is the kind of thing currency traders really look for.
Take a quick peak at AUD/JPY on a daily chart….and once again plot the beloved 200SMA.
See anything you like?
No brainer here “price wise” as this retracement in an obvious downtrend screams “sell”.
You have to keep in mind though……price and time are two different things. This is a great level to start thinking short the pair…….regardless of how long it bounces around at the 200.
Me? I’m getting under it with sell orders a full 100 pips below. If she screams higher ( doubtful ) then I’m not in the trade ( get it? ) – job well done.
When she falls…..I get picked up on momentum.
You have to learn to let the market come to you…….stop chasing shit all over your screen.