FxWirePro Call Review: Maintain USD/JPY short; stop loss recommended

At the beginning of this month, when the yen was weakening after the outcome of the French Presidential election, we recommended going long on the yen against the dollar in an article named, “FxWirePro: Buy yen at dips targeting 101 per dollar”, available at http://www.econotimes.com/ .

There we recommended, “…buying the yen at dips against the dollar with a target around 101 per dollar. Preferred buying areas are here at 112 (10 percent of the total intended position), then at 114 (20 percent of the total intended position), then at 115 (60 percent of the total intended position) and finally at 116.5 (10 percent of the total intended position). We would recommend stop loss after entering fully into the trade.”

The yen weakened to as low as 114.3 per dollar before strengthening again. As per our guideline, our readers couldn’t have entered the entire desired positions.  We recommended at this point maintaining the entered positions and add fresh positions at breakouts. An addition of fresh short positions is recommended one the pair break below 110. As of now, we would like to recommend a bigger stop loss around 115.5 per dollar.