Trade of the week: long USD/JPY
USD/JPY remains in a clear uptrend, and the recent dip to ¥150.00 may be used to jump on the band wagon and go long with a stop loss below the uptrend line at ¥148.64, and an upside target around ¥152.00.
(AI Video Summary)
Previous S&P 500, VIX and EUR/JPY trading outcomes
In this week's "Trade of the week" video, Axel Rudolph talks about his recent trading experiences and offers some advice for someone who doesn't have much experience in trading. He suggests that it might be a good idea to cash in the profits on a long position in the S&P 500 because he believes that the market's upward momentum is starting to weaken. He also mentions that the time of year is approaching when the market tends to be weaker, so it might be a good idea to adjust your take profit levels.
He goes on to discuss another trade he made on the VIX index. He went long (which means he expected the price to go up) when the index was around 1464 and he was able to make a profit when it reached his target. However, he also mentions a trade that didn't work out so well. He went short (which means he expected the price to go down) on the euro against the Japanese yen, but he ended up losing a small amount of money because the euro actually ended up appreciating against the yen.
This week's trading opportunity
Rudolph suggests going long on the USD/JPY. He thinks that because of the US holiday, the market is currently trading with low volatility, which means that the price isn't moving up or down by much. He sees an opportunity to enter the market when the price reaches around ¥150. He expects the upward trend to continue in the next few days, and once it rises above ¥150.88, he anticipates that it will retest its all-time record highs around ¥150.91.
To make this trade, he recommends placing a stop loss (an order to sell if the price goes below a certain level) below the uptrend line at ¥148.64. He also suggests setting an upside target (the price at which you want to take your profits and sell) of around ¥152.00. This way, if the price goes below ¥148.64, you will sell and cut your losses, but if it goes above ¥152.00, you will sell and make a profit.
This information has been prepared by IG, a trading name of IG Markets 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.
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