Forex Market Analysis Report – 12/28/18 – AUD/JPY…I’m Trying To Short This Pair

Forex Market Analysis Report – 12/28/18 – AUD/JPY…I’m Trying To Short This Pair
December 28 14:56 2018

Risk aversion refers to when traders unload their positions in higher-yielding assets and move their funds in favor of safe-haven currencies. This normally happens in times of uncertainty and high volatility, “risk-off” environment.

Risk appetite remains limited throughout the US equity markets having the worst year, quarter, month and week in many years.  As a result, the Aussie continues to suffer in lock-step with a lagging Chinese economy, while investors keep one foot firmly planted in the safe-haven Yen.

It should come as no surprise that the AUD/JPY has suffered a 500+ pip drop since the beginning of December.  I have been personally trying to sell this pair and build a multi-year position, but price never made it to my sell level many weeks ago.

No sweat because the AUD/JPY correlates very well to the US equity Markets. And so I think this is just the beginning for the AUD/JPY. Look how much room there is to the downside.

I’m not saying price is going to reach the lows of the internet bubble or great recession, but there is room for price to fall at least another 1000 pips.

I’m expecting a rally at some point in the US equity markets, so until then, I will wait patiently for a pull back and if price doesn’t make it all the way back to these the 81.000 – 82.000 level, I will have to go down to a lower time frame to get short this forex pair.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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