Behavioral Trading Insight: AUD JPY AUDJPY

A relief recovery where market conditions for equities in Asia followed suit as continued optimism over an impending US budget resolution may actually take place and avert a possible debt default. On the other hand, is it just a quick fix-patch for an extension that would buy more time to come up with a real working agreement that would have a real serious effect for a slow-growth US economic recovery?

Weighing these news have provided investors a timely easing from tension, fear and uncertainty clouding the market place coming from all directions. However it maybe, the initial talks would probably be acceptable for both parties simply to reach the end of the year's quarter ending of 2013 would be perceived as a near-term USD positive.

With that said, how does one prepare or create an effective trade strategy in the Foreign exchange market for any eventuality of a default or a resolution in the making given a limited time period? Obviously, there would be a lot of in case-scenarios that can be conceptualize before then. And the most common for a doom & gloom market reaction is a decline of the USD and the global catastrophic effects of a US debt default that could ripple in the entire financial markets. And that is where almost all investors and traders alike would come in together to sell-off the US Dollar.

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