It’s risk-off Friday and that usually means that pairs like AUD/JPY can come under some selling pressure (as you know, I love really cheap trades with potentially excellent rewards). We are trading near a weekly high from last year at 87.75 and the short term charts look a bit over-bought to my eye.
Obviously I’m trading against a very strong short-term bullish trend, so I’m keeping stops tight above 88.00 and if it does top out and turn, I think levels back at 85.50 are achievable; a 1:5 risk-reward ratio, which more than compensates in my view for the risk I’m taking in fighting the trend.