Trade Closed: Downtrend Continuation in AUD/JPY?

Trade Closed: Downtrend Continuation in AUD/JPY?

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AUD/JPY hits both of my short orders before dropping this week on more Coronavirus fears. Closed my trade after a nice gain to reduce risk ahead of the weekend. Here’s a quick review.

Downtrend Continuation in AUD/JPY?

AUD/JPY 1-Hour Forex Chart
AUD/JPY 1-Hour Forex Chart

Earlier this week, I decided go short AUD/JPY on both technical arguments (bearish divergence at Fibs) and on fundies (expected more negative Coronavirus updates on top of recent RBA rate cut). I went with a scale in entry strategy, which were both hit to put me in a full short position with an average entry price at 71.12.

And it looks like it worked out nicely as the market did return to risk aversion mode on more negative coronavirus stories, most notably on the report that California declared state of emergency over coronavirus. AUD/JPY fell quickly in today’s trade, and with a solid R:R gain after just two days, I decided to close the trade down manually (70.10) to lock in profits ahead of the weekend and tomorrow’s NFP report:

Total: +102 pips average / +1.76% gain on 1.00% max risk

Overall, this was a great trade, and while I did give up the potential that this would make more gains, I feel that I can easily jump back in if we see more negative news next week.

What do you guys think of this trade adjustment? Should I have held on and just rolled down my stop and or reduced the position size? Let me know in the comments section below!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

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