*Trade Update: The Global Currency Scalper has liquidated the AUD/JPY position with a gain of 28.1 Pips. We have seen this pair, as well as many others, come down hard today giving us an opportunity to make a quick profitable trade. The Global Currency Scalper is thinking we could eventually see a snap-back move in many currency pairs and do not want to get caught on the wrong side, so lets book the profits and move on to the next trade.
As of 01/05/2015 @ 19:55 EST:
We have identified AUD/JPY as a possible short trade. Looking at the daily chart above you can see this pair has broken the 200 day moving average which is just below the 50% Fibonacci retracement level. Over the past few days you can see that the AUD/JPY has begun to rollover from its bounce off the short-term lows set in mid-December.
The Global Currency Scalper is looking to take a short position if the AUD/JPY takes out the 96.160 level. We can see this pair moving quickly to the 95.200 - 95.000 level and if that's taken out we could see 94.500 - 94.200 levels. Our stop will be placed at 97.500 and if this level is breached prior to initiating a position our opinion will change to neutral and further evaluation will be needed.