Long CADJPY From 83.78 (Stop at Break-Even)
Subsequent to the Canadian economic activity report, I took a long CADJPY position at 83.78 during live coverage of the report. Indeed, gross domestic product in the region rose an annualized 3.2 percent in December after climbing 3.2 percent the month prior amid expectations of 2.8 percent, while the quarterly figures soared 3.3 percent in the fourth quarter on the back of increased demand for exports. As of late, the CAD has reached an intraday high of 84.13. Though there looks to be further upside in the pair, I took 2/3 profits at 83.99 and will place my stop at break-even for the reminding 1/3; open target. Short term resistance comes in at 84.20, and a clear hourly close above this level may lead prices towards the 85 area. Focus will shift to the Bank of Canada interest rate decision which will be released tomorrow at 14:00 GMT. Though the central bank is widely expected to keep rates unchanged, comments trailing the decision will likely dictate price action.
CADJPY1 Hour Chart
Source: FXCM’s strategy trader – Prepared by Michael Wright
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