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Yep, this one’s still open, fellas! Got a few close calls earlier on but I’m feeling giddy that the pair is starting to gain a bit more momentum on the bounce.

Long CAD/JPY Trade

In my trade update a few weeks back, I mentioned hopping in at market as it seemed the area of interest coinciding with the long-term channel bottom was holding.

CAD/JPY dipped much lower than that in the days that followed as crude oil kept sliding and trade-related jitters resurfaced. Fortunately, I set a stop wide enough to withstand tests of the nearby support areas.

CAD/JPY Daily Forex Chart
CAD/JPY Daily Forex Chart

I was able to get in at 86.11 so I set a 200-pip stop at 84.11. I actually thought of closing my position early when price broke through 85.00 and dipped to a low of 84.61, but I figured I’d stick to my guns and ride it out.

You can imagine my sigh of relief when the G20 meeting between Trump and Xi was followed by a pickup in risk-taking as both leaders pledged to hold off more protectionist measures. To add to that, speculations of oil output curbs from the OPEC and Russia, as well as Alberta, propped the Loonie much higher early this week.

I’m not making any trade adjustments just yet since price is still pretty close to my entry level and the weekend gaps might get filled first. I’m setting my sights on the mid-channel area of interest initially but keeping my fingers crossed that the pair makes it back to the swing high or channel top.

Here’s what I have:

Long CAD/JPY at 86.11, stop loss at 84.11, profit target at 89.11.

I’ve risked 0.5% of my account on this trade, and I’ll move my stop to entry once price tests the middle of the channel around 87.00.

What do you guys think? Is momentum finally on my side here?

 

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