Got in long CAD/JPY at the price I wanted and fortunately for me, it turned out to be the bullish reversal point for that pair. With a solid gain and top tier Canadian data ahead, I’m making an adjustment to my trade to lock in a profit and reduce my risk.
CAD/JPY Resistance Break & Retest?
At the end of October, I spotted an opportunity to play my fundamental bias on CAD/JPY, putting up orders to buy on a pullback to 82.10. Fortunately, the market did make its way down to that Fib / broken resistance area and triggered my order to put me in long at that price.
In just a few trading days, the market quickly rallied higher, now testing the 83.00 area, and with the Canadian jobs report and housing data at the end of this week, I’ve decided to:
- Lock in some profits by closing about 60% of my trade down manually at 82.97.
- Rolled up my stop to 82.10 to reduce my risk even further.
This locks in +0.12% on 0.50% max risk, or a rough 24% return-on-risk. Not bad for less than a week of hold time, and depending on what we get from this week’s Canadian data and how the market reacts, I may re-enter this trade on any kind of pullback. Or if the pair shoots higher on positive data, I’ll likely roll up my stop and add buy orders to maximize my potential profit.
What do you guys think? Did I adjust too early or should have I just closed the whole trade down? Let me know in the comments section below!
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