Forex Weekend Preview: USD/CAD And USD/JPY In Focus
Shain Vernier • 2 min read
Once again, the trading week is drawing to a close and the weekend is nearly upon us. Hopefully the last four-and-a-half sessions have brought buckets of green pips to your trading account. If not, rest assured that next week will provide ample opportunity to take some money out of the markets.
After a long trading week, a nice two-day break is in order!
For the past several weeks we have had a full slate of potentially market moving events occurring while the forex is closed. By comparison, the schedule for this Saturday and Sunday is very quiet. The only happening worthy of note applies to traders in the U.S. and Canada. A reset of the watch will be necessary, as Daylight Savings time ends early Sunday morning.
Trade Update: USD/CAD
This morning’s U.S. and Canadian employment reports spurred volatility, bringing yesterday’s trading plan for the USD/CAD into play.
USD/CAD, Daily Chart
After taking some serious heat immediately after election, this trade has produced a maximum profit of +38 pips, a bit under the 1:1 R/R position outlined in the plan.
As of this writing, the USD/CAD is trading near 1.2774, +33 pips from entry. Ultimately it is trader’s preference, but if you are carrying a position for this trade, you may want to lock in some profit or at least limit the downside. We are poised to hit 1.2784 to complete the 1:1 R/R from entry, but I am making sure that I take some profit from the setup.
The technical outlook moving forward for the USD/CAD looks promising. Next week should produce several trading opportunities. Check back on Monday for more ideas facing this asset.
Trade Update: USD/JPY
The short scalping play outlined earlier produced an immediate positive 10 pips upon election. Since that time, the 2:1 R/R has been realized for a stress-free 20 pip profit. The May/July double top area proved formidable once again.
Currently, the USD/JPY is challenging the double top, trading 114.33. In the event that 114.49 holds for the session, we may have a breakout scenario for next Monday/Tuesday sessions.
This week has been full of productive recommendations and trading signals here at FX Leaders. Be sure to check in for next week’s action. My colleagues Rowan, Arslan, and Skerdian will be online providing insights and analysis facing each of the trading sessions.
Remember, next week is always the best week!