Caught a bit of good luck on my CAD/JPY short thanks to weaker oil and safe haven demand, and now I think it’s time to lock in some profit!
Since shorting at market over a week ago, CAD/JPY bears have steadily made gains, mostly on a wide combination of possible catalysts: weak oil market (rising U.S. & OPEC oil output), weak Canadian trade data, and risk aversion sentiment rising on a string of geopolitical tensions (Middle East, U.K. Parliamentary election, and former FBI head Comey’s testimony).
The market is now about to retest recent swing lows between the 80.50 – 81.00 area, with the stochastic showing the latest move down may be out of steam. So it’s time to adjust, especially with the Canadian jobs report coming out at the end of the week. It’s expected to improve on last month’s 3.2K reading to 15.0K net jobs added, so the risk is that we could see a jump in the Loonie by the end of the week.
With that in mind, I decided to roll my stop down to roll down my stop from 84.56 to 81.65 to lock in 70% of my profit gained so far, or a 0.39% gain on 0.50% risk.
The economic calendar is pretty heavy this week, so this may close out before I even get to the CA jobs data on global risk sentiment, but I’m leaving a little bit in room in case the bears take this pair down lower to maximize my gain. Stay tuned and trade safe!
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