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Barclays absolutely hit it out of the park with this trade idea

Barclays recommended AUD/JPY shorts on Monday

On Monday, we brought you Barclays 'trade of the week'. It was to sell AUD/JPY.

Barclays trade of the week: Sell AUD/JPY

The absolute best trade in the FX market this week was short AUD/JPY.

They got the fundamental trigger wrong -- they expected a dovish RBA -- but they got the chart and price action right.

"Given the stretched condition of daily momentum studies, we would prefer to use counter-trend upticks as an opportunity to sell at better levels. A confluence of resistance in the 86.35 area provides nearby selling interest. A move below our initial downside targets in the 83.50 area would encourage our bearish view for a move lower in range toward next targets near 81.45."

The technical rational they showed was simple. It highlighted the 61.8% retracement of the Dec/Jan decline and the old mid-Dec low.

The pair is trading 275 pips below when they issued the call. The 83.50 level they mentioned was hit the next day and a retracrement to 85.50 was also a selling opportunity. AUD/JPY is trading at 82.82, 1.4 cents from their ultimate target.

A trade idea like this is definitely worth the price of a subscription to eFX Plus.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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