Buying at Bottom of CAD/JPY Range – Orders Cancelled

Orders Cancelled: 2012-11-19 22:01

This turned out to be just what I feared… another missed trade! D’oh!

CAD/JPY Daily Chart

As some of you may know, this trade was a beaut for those who were able to catch it… Sadly, I wasn’t one of them!

That’s right, my orders were never triggered at the bottom of the range. As it turns out, I should’ve bought the pair at market right when I spotted this setup because moments later, the pair staged what would become a 200-pip rally.

I’m totally bummed out about this, as this is the third time in a row that I’ve missed out on a profitable trade. Maybe I ought to try something different this week, like enter at market instead of setting orders. After all, it’s been a while since I last jumped in at market!

Anyway, thanks for following, fellas. The only consolation I got from this trade setup is knowing that at least some of you were able to bag some pips from it. Good on you, guys!

Trade Idea: 2012-11-14 01:50

CAD/JPY Daily Chart

After missing out on the euro crosses the past couple of weeks, I think it’s time to try my luck on a comdoll cross. And I gotta say, I like what I see on CAD/JPY!

The pair’s been trading in a range of about 200 pips over the past three months now, never trading below 79.00 or above 81.00. Currently, the pair’s approaching the bottom support line, and with Stochastic about to hit oversold conditions, I think it’s time to jump in!

The fundies also line up really nicely as well. The Canadian dollar has been pretty resilient over the past few months, while oil prices have also been rising lately.

Moreover, there’s always the ever present threat that the Bank of Japan will hit the markets with additional quantitative easing measures in order to weaken the yen.

Looking forward, the key events to keep an eye on that will have the biggest effect on CAD/JPY price action will be the BOJ monetary policy statement next Tuesday (November 20) and Canadian retail sales report next Thursday (November 22). Hopefully these reports work out in my favor!

Here’s how I plan to manage this trade:

Buy at 79.15, stop at 78.70, profit target at 81.00.

I’m buying just above the support level, just to increase the chances that I get triggered. What I like about this trade is that it gives me a sweet reward-to-risk ratio of 4:1! Since I’ll be risking 0.75% on this trade, that means if everything goes perfectly, I’ll be taking home a solid 3%!

What do you guys think of this setup? You think its worth a shot?

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  • Fitz

    TP hit. Thanks for this trade. You’re now my favorite BP blogger. 😀

    • cyclopip

      Thanks a lot, bud! And congratulations! Glad I could be of help. 🙂

  • Runa Raven

    Woohoo I bagged almost 200 pips. Many tanks for this trading idea Cyclopip. By the way I went short 5 min ago. SL 81.30 and TP 79.20. Wish me luck!