Paper Trade: retrying AUDJPY short @ 84.52, Stop 85

By Paul | Published: January 6, 2010

My previous AUDJPY short entry was early as I surmised (entered without short-term confirmation).  I made a number of ins and outs with that trade as depicted in Figure 1.  Some were winners, some were losers.  In all, it’s around breakeven in that trade.  However, I have re-entered this short in AUDJPY just now at 84.52 using the same long term setup (see weekly chart in that post) as it hasn’t been broken yet.  Moreover, AUDJPY is in the process of making a negative divergence on the 3-hour chart as shown in Figure 1.

The key word is “in the process”.  There is still a possibility of a breakout upward from here.  I am being aggressive to establish a position here because of intermarket divergence in Aussie crosses versus gold price overnight.  See Figure 2.  As you can see, gold made a marginally higher high above 1130 on the 4-hour chart of Figure 2.  Yet, neither AUDUSD nor AUDJPY followed suit.  Those two currency pairs are holding their respective double top.  The exception is EURAUD, it keeps diving downward, but that can be accounted for by Euro weakness.  It would have been a perfect picture of EURAUD can hold its bottom though.

I wouldn’t count this trade to work out just yet.  That’s why I’m only risking 0.2% of my account with a small position size for now.  As you can see from my trade orders shown in Figure 2.  I have a couple limit orders just below the near-term supports to add to this short.

My pawns have been placed.  Let’s wait and see what the market does.

AUDJPY, 3-hour

Aussie crosses and gold price

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Related posts:

  1. Paper trade: Short AUD/JPY @ 84.53, Stop 85.00
  2. AUDJPY Short 81.37/77.17: Anatomy of my first 400+ pips trade
  3. Paper trade: Short AUDCAD @ 0.9489, Stop 9540
  4. Paper trade: Short AUD/JPY 50% @ 83.60, Stop 85.50
  5. Paper trade: Short USD/CAD @ 1.0573, Stop 1.0640, Target 1.0415
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