Treasure Chest | Nov 29 2011
What?
FXCM FX trader James Stanley believes there is a "compelling" risk-reward opportunity in AUD/JPY.
How?
Stanley is using technical analysis, and more specifically Ichimoku clouds to come to a longer term view on FX trends. He also suspects more FX traders in Japan use Ichimoku and this makes this technique more appropriate for FX crosses that involve the Japanese Yen. His analysis shows AUD/JPY is currently at an inflection point near the top-side of the Kumo ("cloud") on the 4 hour AUD/JPY chart. This, he believes, presents traders with "a compelling opportunity to look at short positions".
Reports Stanley: "if I am correct, there is a lot of room on the downside for the currency pair to run. Recent price has traded as low as 75 on the AUD/JPY currency pair and I am using this swing-low support as my profit target on the trade; presenting an approximate risk/reward ratio of 1 to 3.5."
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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