Hedging a Breakout

Selling the EUR/JPY breakout would have been an effective and profitable hedge against the NZD/USD and GBP/USD breakouts early in the Tokyo session today. All three breakouts to the upside failed and ended up costing me. It was apparent that the Euro was the weakest of the major currencies. Next time I will look to hedge my breakout plays with a long-reversal on the weak currency.

Long the breakout

Short the breakout