Ugh! I really should’ve cut my losses when I had a chance, but a part of me was still hoping that this pair was prime for a big rebound.
Long CAD/JPY Trade
Just when it seemed that Loonie bulls were still defending the long-term ascending trend line for this pair, price crashed straight through when the BOC sounded less optimistic in their rate statement.
Not even the OPEC output deal was enough to prop the pair any higher as market watchers seem disappointed with the size of the production cut.
With that, CAD/JPY tumbled all the way down to hit my 200-pip stop and I barely had the chance to trim any losses. I thought that bullish momentum was kicking in after price gapped up over the weekend, but sadly it didn’t work out in my favor.
Here’s the damage:
P/L: -200 pips / -0.5%
There were so many ways I could’ve played this one better, and I still wish I had been able to adjust my stop up to entry when price tested the 86.90 area last month. Unfortunately I hesitated when it seemed that the pair was due for yet another test of the trend line, so I held off any adjustments.
No use crying over spilled pips, though, right? Now that I’m switching to a bearish Loonie bias with the BOC shift, think I should try to catch the opposite trade?
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