A couple of days ago, I recommended getting long British Pound against JPY.

Yesterday, I saw a nice setup to add to my JPY short positions, this time against the CAD. However, the risk:reward wasn't good enough, so I passed. However, today I am revisiting this pair and have decided to place an order to go long. I explain the reseaons below:

Firstly, here's the long term chart:

This pair appears to have formed a significant reversal inverse head and shoulders pattern over the last eighteen months, and broke the neckline of resistance last week. This length and size of this pattern makes me strongly bullish for the coming months.

Now let's zoom into the daily chart to see the trade setup:

Prices have been consolidating after last week's breakout over the past four days. Furthermore, today's price action was quite strong and closed on the high of the day. This gives us an opportunity to test out the long side by placing a stop order above the high of these bars, with the potential for a high reward:risk ratio if this recent momentum continues.

Long CADJPY @ 91.5
Stop @ 90.64
Initial target 94.21
Reward:Risk 3.2

Bonus charts

I also leave you with these bonus charts for your consideration...

NZDCAD weekly

NZDCAD daily

CHFJPY daily

Seems to be a lot of opportunites in the markets recently!

What do you think?

Thanks for reading, any feedback is much appreciated!

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Disclaimer: These are my ideas only and do not constitute investment advice. If you place any trades listed here you are doing so at your own risk and I hold no responsibility for any losses. Please pay attention to your risk management.