This is an update to a previous AUD/JPY analysis which can be viewed at my blog by visiting http://1618analytics.blogspot.com/2011/06/audjpy-2-gann-prices.html
Originally I thought this trade would be good for a run all the way up to .94's. As you can see from the trade history included in this chart, I was in the trade for 2 weeks. In most cases my greed takes over and I look to hold the trade until the instrument reaches the intended target. In this trade I was fortunate not to be stubborn and instead I chose to exit the trade well before my target was reached. My decision to exit was based on the correlation between the AUD/JPY and the USD/CAD. For that period of 2 weeks both these pairs showed significant strength. The usd/cad was just below parity, and I knew that if the AUD/JPY was going to rise up to 94's, this would indicate the USD/CAD would reach 1.03-1.05's. I wasn't very confident that we would see that much of a rise in the USD at that time. Again, given the correlation, if I wasnt going to be long of USD/CAD then I could no longer maintain this position in the AUD either. After exiting, I was rewarded for my instinct because both the USD and the AUD fell precipitously. Hopefully in the future I can maintain a larger degree of flexibility when viewing my open positions.
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