Week of: 05/02/22 – 05/06/22
The World Wealth Gauge is screaming a Risk-Off environment and that’s not surprising given the FOMC decision we have this week. A half percentage point interest rate hike can be a big, crazy move by the Fed. It’d be the first such move since 2000 and its done to curb the inflation which has hit the roof.
This is exactly the time we have to stick to our guts, be confident, and have the tenacity to move forward.
And to do that, we have it here again – the AUDJPY.
(Anybody who’s not in this trade – because of the signs I’m seeing, I like this currency pair now as much or more than I’ve liked it over the last few weeks I’ve been talking about it.)
The currency pair is currently sitting at all-time highs. And high time prices are often followed by lower prices, especially in a risk-off environment we’re seeing now. Therefore, I want to sell the AUDJPY.
Here are the two trade setups –
- If you’re not in this trade, a conservative option is to sell on a break below 93.05. The target here can be at 76.50 with a stop set at 102.85.
- And for ones who’ve been following this trade, here’s our original trade setup…
Sell at 90.06, 94.50, 97.25, and 100. Our average price, if we sell at these four levels, will be 95.45. My profit target on this one is at 76.50. The average risk with this trade is 745 PIPS, while the reward comes to around 1,895 PIPS!
The Fed’s decisions is going to be a major catalyst this week and we may see some movement in this trade as well.
I say that because this is the first such big hike in 22 years! Moreover, the base rate was 6% then and a half percentage point hike didn’t have a huge impact on the economy and markets. The story, however, is totally different now.
And to tackle the resulting volatility, and potentially profit from it, I will be staying confident and managing my AUDJPY trade going forward.
Check out this week’s top picks video for all the strategy details.
A big thanks to all of you for following Tysons Trends!
For more tips and picks, you can join me in my Money Flow Trading Room. It’s where I talk about market and trade strategies every week.