After reviewing the charts of the currency pairs this evening, I’m still convinced that the best chance for a profit is going to originate due to profit taking in the Yen cross-pairs. What caught my eye the most though was the AUD/JPY which was consolidating a few days ago and recently broke higher only to form an inverted hammer today right near the FFF Reversal Zone.

So while it is a little bit riskier move than I typically take, I’m going short here with a stop just above the FFF RZ and a target somewhere in the vicinity of the 95.00 consolidation area. The setup and targets are very similar to the EUR/JPY position which I still have open with the MACD divergence and Overbought RSI only this trade has an even better entry due to the recent daily breakout.

The risks here are that I am doubling down on my Yen short exposure but I am hoping that the more than 3+ Reward/Risk ratio will make the trade worthwhile. And as always, I’ll continue to monitor the position and look for signs that the tides may be turning against me so I can take action if necessary.

And for an update on my EUR/JPY trade; After initially moving in my favor 30 pips, today it move 60 pips in the other direction so that I was down 30 most of the day but it is now back around my entry point. I’ll let you know how both of these turn out.