UPDATE: Japan sales tax delay propels EURJPY trade into profits
The original trade idea posted on May 30 was based on the view that the EURJPY rally was temporary and due to month-end positioning. It also assumed that strong US data would renew downward pressure on EURJPY. Those premises proved correct.
What wasn't expected was the violent USDJPY reaction to news that Japan's sales tax hike will be delayed. That turned what was expected to be a slow grind lower in EURJPY into a nosedive, propelling this trade into profits.
The EURJPY take-profit level was achieved and the position closed for a gain of 1.63 points.
Note: The second sell order was not filled, but it came excruciatingly close.
Entry: sell ½ position of EURJPY at market (currently 123.83), balance 124.20.
Time horizon: five days.
— Edited by John Acher
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