This trade is developing a little disappointingly so I have cut 1/2 of my remaining short position and have a stop on the balance above 83.35. I have also entered a fresh USD/JPY short position and will be looking to up my risk on breaks below 88.00 and 87.00. I usually don’t sell breaks but if the level goes then I wait for the dip to finish and then I look to sell rallies.
The USD bear trend is proving increasingly persistent and with Sovereign demand on dips in pairs like EUR/USD and AUD/USD showing little sign of abating, it looks more logical to stick with USD shorts rather than trying to force moves in the crosses.