Hedging Strategy of the Week for 300 pips in Profit Potential
Currency Pair: CHF/JPY Entry Zone: Go both long and short at the market if the price is at any level within the 97.00-100.00 range Protective Stop: Long stop below 103.00 and short stop above 94.00 Profit Target: Long Target at 100.00 and Short Target at 97.00 Profit Potential: 300 pips (excluding transaction costs and slippage)
The CHF/JPY is our primary target for hedging in the week ahead, with clear range-bound trade and concrete support and resistance levels. To hedge, go both long and short at the market if price stays within the above Hedging Zone. Take profits at R1 for longs and at S1 for shorts, covering losses above R2 or below S2.
The most effective way to capitalize on currencies pairs that are trapped in tight ranges is through the use of hedging. The hedging feature is currently available on all accounts using FXCM’s No Dealing Desk service. For more information on FXCM hedging strategies please visit http://www.fxcm.com/hedging.jsp