Tuesday, April 28, 2015

New Correlation Trade In AUD/JPY & EUR/JPY

*Position Update:  As of 04/28/2015 @ 23:11 The Global Currency Scalper liquidated 75% of its correlated trade between AUD/JPY & EUR/JPY with a profit of 32 Pips.  We will be holding 25% of the position for the remainder of the closing of the correlation gap.

As of 04/28/2015 @ 19:05 EST:

The Global Currency Scalper is taking a correlation trade between AUD/JPY & EUR/JPY.  As you can see over the past year the correlation has fluctuated quite a bit, even crossing at times exchanging the lead.  Currently AUD/JPY has taken the lead over EUR/JPY and the spread in the correlation has widen to approximately 500 pips.  Throughout the past year, the widest the spread has become 500 - 600 pips.

The Global Currency Scalper will be taking 1/2 of a position by going Long EUR/JPY and Short AUD/JPY.  With news slated to come out of New Zealand this evening and the Fed meeting on Wednesday the spread could widen to 600 or slightly more pips enabling us to add to our position.  If the spread starts to narrow we will see a nice profit without taking much directional risk.

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