BNP Paribas bet on AUD/JPY to rise in mid-October when the pair was trading at 93.45 and the trade worked great for a few days, hitting 95.68 on October 22.
Today, they bailed at 93.45, which was the entry point, leaving the trade as a net zero. Not a bad move, considering the pair fell as low as 91.77 at one point today.
I subscribe to the theory that if you expect a trade to behave a certain way and it doesn’t materialize, head for the exits. If you can do it at zero cost, take it.
I also subscribe to the theory that when others are bailing out, it might be time to get in… and you can say that about a few AUD trades today.