This is a post to update my initial trade ideas for the USDJPY pair. Since then, I have also taken an additional short trade involving USDCAD.
First up is the USDJPY pair. I originally mentioned taking a long position over on the daily level where the arrow is drawn. As indicated, this resistance turned support level held up nicely leading to a 100+ pips movement.
I do have another level drawn up. It’s a bit more arbitrary as it targets a previous high, but it is not the most recent high. This is better shown below on the lower time-frame.
This isn’t a perfect level, but it seems respected from 12-hours ago. I’ve moved my stop up to just below the lower wick. If this level holds up, I would be looking to hold this trade for it to make another move upwards.
The U.S. Dollar strength will be partially influenced by the degree of rate hike talk. This will also be determinant of the employment figures due this Friday as the Non-Farm Payrolls are released then.
Moving onto the USDCAD pair, I have a short position open getting in on the next wave sell-off especially in lights of the BOC rate hike talks.
I have annotated a daily level I have been monitoring. After one up day, I managed to get in as it appears price is being held supported. This is better viewed below on the lower time-frame.
Currently in this trade with +65 pips. i have put a take profit just above break even. The 1.2960~ price level is another potential point of being re-tested. I currently have no problem holding through that level provided that it holds up and leads to a further sell-off.
Nevertheless, today is not an ideal day to be looking at any volatility based movements given the U.S. holiday.