Trade of the week: short USD/JPY
Since the Bank of Japan might hike its rates for the first time in 17 years, we would like to short USD/JPY with a stop loss above ¥152,00, and a downside target slightly above ¥140,00.
(AI Video Summary)
Previous S&P 500 trading outcome
This week's "Trade of the week" starts by talking about a trade that Axel Rudolph made a month ago on the S&P 500. He went short (which means he bet that the price would go down) at around 5,087, and set a stop loss at 5,200 (which means if the price reached that level, he would automatically stop the trade to limit their potential losses). Even though the price of the S&P 500 has been going up, his trade hasn't been stopped out yet, but it is currently not making much profit. He suggests keeping the stop loss at the same level for now.
Previous EUR/USD trading outcome
Then, he mentions another trade he made at the end of February, where he went long (betting that the price would go up) on EUR/USD at $1,844. This trade is still making a profit, so he suggests raising the take profit order (which means the level where he would automatically sell to lock in his profits) to just below Friday's low at $1,870.
Previous USD/CAD trading outcome
Next, he talk about a trade that his colleague, Chris Beauchamp, made last week, where he went long on USD/CAD. This trade was done around a moving average level of $13,481 and is currently making a profit. He suggests moving the stop loss to break even (meaning the level where he would sell to at least cover his initial investment), making it a potentially risk-free trade.
This week's trading opportunity
Finally, he introduces this week's "Trade of the week", which involves going short on USD/JPY. This is based on recent news about the US economy and the upcoming meeting of the Bank of Japan. He believes there is a good chance that the Bank of Japan will increase interest rates, which could cause the USD/JPY currency pair to go down. He suggests going short on USD/JPY at current levels, stop loss above ¥152,00, and a downside target slightly above ¥140,00
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
