Trading the trend: long USD/JPY
USD/JPY is seeing a minor retracement lower which could be used to enter a long trade in the direction of this year’s uptrend. We would thus like to go long USD/JPY with a stop loss below ¥145.90 and an upside target at ¥152.00.
(AI Video Summary)
Previous Arabica coffee trading outcome
In this week's "Trading the trend" video, Axel Rudolph reflects on his recent trades and talks about their current positions. He started by betting on the price of Arabica coffee to go up. He entered the trade when the price was around 186 and watched it climb to 194. However, things took a turn and the price went down, causing them to sell at his entry level.
Current New York cotton futures trading progress
Next, he moves on to his current trade in New York cotton futures. He entered at about 85.70 and are currently making a profit. To protect his gains, he raised the level at which he would sell if the price goes down, so he doesn't lose anything. He has set his sights on a target price of 90, which he sees as a strong resistance level based on previous market behavior.
This week's trading opportunity
For his trade this week, he plans to jump on the upward trend of the USD/JPY. He sees a temporary drop in the price as an opportunity to buy. He bases his decision on the difference in interest rates between the US and the Bank of Japan. The Bank of Japan has a cautious approach, while the US is more optimistic. He believes the upward trend will continue in the upcoming days and weeks, particularly if the price breaks through recent highs between 148.80 and 18.90.
With all of this in mind, he suggests buying USD/JPY at its current price, and setting a level at which he would sell if the price drops further. He also set an upside target at around 152, meaning he expects the price to go up to that level. By carefully managing his trades and considering market trends, he aims to make successful trades and achieve profits.
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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