Good afternoon Forex Kings,
The 2.5 trillion stimulus bill has now been passed and the JPY is weakening as trillions of dollars is going to be flooding the market to stabilize US stocks.
We do not feel this is the end of the bear market though.
The USDJPY has found some support at the 110.45 level.
To ‘Hedge‘ our current position we are looking at a technical set up on the AUDJPY.
On the short term time frame there appears to have been an inverted head and shoulders pattern.
Trade Setup: BUY AUDJPY – Market Price (65.55), stop loss set at 65.15 and take profit left to run.
Stop Loss: 50 PIPS
Take profit: 200 PIPS