What to short if April/May correction?

[jrhardy1]

Hi, I'm looking at shorting AUD/JPY going into April/May (and then getting long provided a sharp correction in the pair). Japanese intervention has me a little leery. However, AUD and CAD are already very weak against USD. Any suggestions??

 

[jrhardy1]

Hi, I'm looking at shorting AUD/JPY going into April/May (and then getting long provided a sharp correction in the pair). Japanese intervention has me a little leery. However, AUD and CAD are already very weak against USD. Any suggestions??

 

[Pharaoh]

Historical corrections aren't always going to repeat themselves. Markets change over time and previously predictable cyclic patterns can break down.

With the BoJ capable of a surprise intervention at any time, my recommendation would be to keep tight stoplosses and never leave anything open over the weekend. Beyond that, you may want to drop into Sive or Andrew's folders in the Shoulders of Giants section and ask if they've got some advice for specific pairs.

 

[FringFX]

Hi, I'm looking at shorting AUD/JPY going into April/May (and then getting long provided a sharp correction in the pair). Japanese intervention has me a little leery. However, AUD and CAD are already very weak against USD. Any suggestions??

why would you buy jpy?
and when do you plan to exit your trade?
it would be better to short other currencies.

 

[ukelelefx]

Hi, I'm looking at shorting AUD/JPY going into April/May (and then getting long provided a sharp correction in the pair). Japanese intervention has me a little leery. However, AUD and CAD are already very weak against USD. Any suggestions??

Looking at the current Japanese economic condition, the JPY is expected to weaken further due to further monetary policy easing from the Bank of Japan (BOJ). Therefore in a long-term, I would not go Short on AUDJPY. However, in a short-term, you can play this pair in a range taking both possible Long and Short opportunities.