Pick of the Day: CAD/JPY – Close Open Orders

Close Open Orders: 2007-03-15 09:55

CAD/JPY rose and met resistance as expected, but not enough to hit my conservative short entry at 100.10. In light of this, we will cancel all open orders and no trades for the rest of the day. With failure to break 100.00 and stochastics hovering above 75, I think the bulls in this market are losing steam and I will continue to eye a short trade on this pair.

No Trade

Trade Idea: 2007-03-15 00:30

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The Yen has been on a wild ride lately as we see money flowing back and forth between the currency and riskier assets such as stocks and commodities. What’s next for the Yen? Well, we saw a sell off in yesterdays trading session and Asian equity markets are currently bouncing back from the past two days of losses. I see the bounce back in equities as a retracement and we may soon see the money flowing back to the Yen.

At the moment, the short term Yen weakness against the Canadian Dollar may not be done yet. Before I jump short in the pair, I’d like to see the market rise to 100.00 – a psychologically important level that may act as resistance area and great entry for our short play.

For today’s Pick we will short half our normal position size at the 61% Fibonacci level drawn on the chart. Depending on price action during the Euro session I may add another half sized position at the 38% Fibonacci level. For now here’s our trade idea:

Short half normal position size at 100.10, stop at 100.60, pt1 at 99.60, pt2 at 99.00

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck!