22 March 2011

AUD/JPY : Re-Sold @ 81.99

  • Market in Risk On mode, which is good for core book.
  • Strong trends ongoing for open trades (eg long CAD, EUR, etc) so not the time to be reducing direct risks.
  • However, want to lock in some profits lest Risk On sees any kind of setback. Not difficult to envisage given Japan nuclear, Bahrain, Libya, peripheral EU credits, etc. 
  • Hence, put on another hedge - short AUD/JPY @ 81.99. After a dramatic collapse on Tokyo radiation woes, this has now pulled back (equally dramatically) all the way to overhead resistance zone between 82-83.
  • As always, my hedges are "trading" (short term) positions vs non-trading (longer term) core.

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