Long

Cad/Jpy Capturing the Yield Spread

Updated

The recent Houthi attacks on oil tankers have escalated geopolitical tensions, particularly impacting the global oil market and consequently influencing the Canadian dollar (CAD) as a commodity currency. Simultaneously, the Bank of Japan's (BOJ) cautious stance post-earthquake suggests potential extensions of accommodative measures.

Geopolitical uncertainties, especially in the oil market, tend to affect the CAD due to its correlation with commodity prices. This situation may create an opportunity for a CAD/JPY long position, considering the CAD's sensitivity to oil price fluctuations amid heightened tensions.

Strategic entry points, coupled with diligent monitoring of oil market developments and BOJ's policy announcements, could present favorable conditions for a CAD/JPY long trade, with the anticipation of potential CAD movements amid evolving geopolitical dynamics

Trade active

Note

We have some bid CPI data in 2hours from the US. As you know the Canadian dollar is highly correlated with the American so watch out how the news comes. If the CPI is as consensus or higher our trade is going to take profit, however if there is bigger drop we may consider close at BE so stay tuned.:)

Note

Adding an additional 0.5 Risk to full position size

Note

Trade is active.

Trade closed: target reached

Take profit hit

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