Trade Recommendations in Anticipation of Beige Book Report

Hi Day Traders:

The Beige Book is due to come out tomorrow at 2pm, and analysts are anticipating a less than stellar economic report. The BB will be reporting on the economic data from early June through July. A poor report will likely result in the selling of riskier assets such as stocks and commodities. Riskier currencies such as the JPY-crosses (EUR/JPY, AUD/JPY, GBP/JPY, etc) are the ones most likely to be affected by this report, I am placing orders to go short (sell) a couple of those currencies. Below is my recommendation:

EUR/JPY sell at 133.250, stop loss order at 134.160, take profit at 132.25
Risk: 80 pips or $900/$90 per unit (1 unit is $100,000, or $10,000 for smaller accounts)
Reward: 105 pips or $1100/$111 per unit (1 unit is $100,000/$10,000 for smaller accounts)

GBP/JPY sell at 156.100
Risk: 30 pips or $320/$32 per unit
Reward: 229 pips or $2410/$241 per unit

From the Desk of
Aaron Reid