Woot, woot! I’m locking in more gains on this CAD/JPY long position as price keeps heading north and moving close to my profit target. If you’re wondering what I’m talking about, don’t forget to check out my initial trade idea first!
It looks like the short-term rising trend line visible on the 1-hour time frame is still very much intact, as the pair just recently bounced off the support area once more. Price is now moving past the 86.00 levels and this week’s highs so I’ve rolled my stop again in order to lock in some pips along the way.
Earlier this week, the BOC had its monetary policy announcement but they didn’t really make any interest rate changes. In fact, their statement sounded a tad more upbeat than usual, as Governor Poloz noted that economic improvements turned out as they expected. He also highlighted the pickup in consumption but warned that business investment and non-energy exports remain weak.
Still, the Loonie was undeterred from its rally while the Japanese yen carried on with its slide. After all, U.S. crude oil inventories chalked up yet another draw in stockpiles at 2.4 million barrels, larger than the estimated drop of 1.4 million barrels in supply, so oil and the positively-correlated Loonie are supported. Data from Japan such as consumer confidence, average cash earnings, final GDP, and leading indicators all came in the red this week and rising U.S. bond yields are drawing investors away from the yen.
I’m keeping my fingers crossed that price eventually makes it all the way to my profit target just below the 88.00 handle. With my trade adjustments, I’ve locked in 250 pips on my first position and 60 pips on my second, amounting to at least 0.34% in gains from here.
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
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