Forex Review: 2014-07-25
With Europe closing, the weekend approaching, and CHF/JPY going no where, I decided to take profits on this pair and look for new opportunities. Here’s my forex trade review.
Original Trade Idea: Shorting CHF/JPY on Strong Support Break
A big reason for taking this trade was that it was a safe haven play on recent geopolitical fears, but since those fears have subsided since, this pair has gone no where. As I mentioned in my original trade idea, I’m not a big fan of holding onto long Japanese Yen positions because of the negative carry, and since I don’t have that safe haven catalyst for now (and the foreseeable future), I decided to close out manually (112.60) a take a small profit ahead of the weekend.
Total: +25 pips/+0.19% gain
In hindsight, I could have better recognized the ebb of risk-off fears and taken profits earlier for probably double the profit, but the geopolitical fears were still lingering and technically, the downtrend has yet to be invalidated. I’ll continue to monitor the technical setup and see if the 113.00 area holds as resistance, but it won’t be that interesting to me again until safe haven fears ramp up again to ignite strong momentum in the pair.
That leaves me with my EUR/CAD short, still in profit, with positive carry, and my stop at breakeven. I’ll continue to hold onto this pair buy may make another adjustment after checking out Canadian GDP next week. Until then, stay tuned and have a great weekend!