Blackday and Mike M. might remember me talking about this trade some months ago when I felt that AUD/JPY, which was around 65 at the time, could rally into the mid 80’s and that it would then at some stage be a raging sell. Well I think that time has come. There is no fundamental reason to be short AUD/JPY, quite the opposite in fact, but this is a trade driven by market positioning and fear. The positioning has the market sitting very long AUD against all other currencies and the fear factor is the memory of what happened to AUD/JPY a little over 12 months ago when it fell 50 big figures, 50%, in a straight line.
I have sold AUD/JPY this morning at 81.85 and I will add to/subtract from my position as the major technical levels hold or break on all time frames. I’ll put some charts up in a moment. My targets for AUD/JPY are 76, 70 and 67- (ASAP please!)
