CADJPY – SELL – Double Trade – 18th FEB

CADJPY – SELL – Double Trade – 18th FEB (Closed)

Good morning Forex Kings,

Fundamental Update

China is stepping up its efforts to protect financial markets as the coronavirus outbreak continues. Chinas Central Bank said it will let banks run up more non-performing loans (bad debt) in a bid to ease the impact of the slow down. 

Apple said on Monday that it does not expect to meet its quarterly revenue forecast because of lower iPhone supply globally and lower Chinese demand as a result of the coronavirus outbreak. 

China has refused help in battling the coronavirus from CDC (Centers for Disease Control and Prevention) and other US health organizations, the Trump administration has said. This is raising the question as to whether the total count of coronavirus cases actually exceeds the Chinese official numbers. 

IF China remains offline longer than first anticipated, Crude Oil prices could decline further, meaning a weaker CAD and also a stronger JPY.

Technical Analysis

CADJPY – 1 Hour Time Frame

As you can see there is a head and shoulders formation setting up. The shoulder line can be found at 83.50, however the CADJPY appears to be struggling to break above the current level. There is a short term double top at 83.10.

CADJPY – 1 Hour Time Frame

This is going to be a double trade set up.

Trade 1: SELL Market order (current price 82.96) – Stop loss above the shoulder line at 83.96 and take profit set at 81.60

Stop loss: 100 PIPS

Take Profit:135 PIPS

Trade 2: SELL LIMIT – 83.50, stop loss set at 83.90 and take profit set at 81.60

Stop loss: 40 PIPS

Take profit: 190 PIPS

Trade Setup
SELL

Entry
82.96

Take Profit
81.60

Stop Loss
83.96