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
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