POTENTIAL TRADE: CAD/JPY
As displayed in the chart, this currency pair has created new lows by breaking previous support structure are the price level 83.0.
Due to this breakout, our bias in this currency pair has now switched to a more bearish view. Instead of trading this long and trying to pick a bottom, we will follow market struture and place sell positions at a retest of the 83.0 level. There is much room for this to move to the down-side.
Our stop losses will be placed 10 pips above the 83.5 level, resulting in a maximum risk of 60 pips on this trade. Our targets can extend until the low of this impulsive move at 78.0, with a total gain of 480 pips. Partial profits should be taken of the table as price moves down and stops should be adjusted in order to make this a risk free trade as it drops.
The risk/reward ratio on this trade is a whopping 5.8.
As displayed in the chart, this currency pair has created new lows by breaking previous support structure are the price level 83.0.
Due to this breakout, our bias in this currency pair has now switched to a more bearish view. Instead of trading this long and trying to pick a bottom, we will follow market struture and place sell positions at a retest of the 83.0 level. There is much room for this to move to the down-side.
Our stop losses will be placed 10 pips above the 83.5 level, resulting in a maximum risk of 60 pips on this trade. Our targets can extend until the low of this impulsive move at 78.0, with a total gain of 480 pips. Partial profits should be taken of the table as price moves down and stops should be adjusted in order to make this a risk free trade as it drops.
The risk/reward ratio on this trade is a whopping 5.8.