CAD/JPY trade idea: How to play the short term trend accelerating higher

Part 1) introduction

Volatility Markets suggests trend-inspired trades that capitalize on market trends.

In the short term CADJPY has been accelerating higher. In the long term CADJPY has been accelerating higher. With the short term trend being the stronger of the two, we propose a long trade idea with a one week time horizon.

Part 2) trade idea details

Buy $ 163,088 USD, or 1.63 lots of CADJPY, take profit at ¥ 110.3479 level with 49.98% odds for a $ 1,000 USD gain, stop out at ¥ 109.0026 with 50.0% odds for a $ 1,000 USD loss through 1w time horizon.

Part 3) CAD/JPY trend analysis

CADJPY last price was ¥ 109.6751. The short term trend accelerating higher is stronger than the long term trend accelerating higher. This trade goes long when the last change was higher and accelerating .

Part 4) CAD/JPY value analysis

Over the past 20 days, the CADJPY price increased 17 days and decreased 3 days. For every up day, there were 0.18 down days. The average return on days where the price increased is 0.339% The average return on days where the price decreased is -0.3506% Over the past 20 Days, the price has increased by 0.048% percent. Over the past 20 days, the average return per day has been 0.0024% percent.

Part 5) CAD/JPY worst/best case scenario analysis

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for CADJPY, is $ 1.077063 , and the best case scenario overnight is $ 1.116439 . levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that $ 1.090026 could trade and that $ 1.103479 could trade. These levels are within statistical probability.

Key Takeaways:

• Price today ¥ 109.6751

• Over the past 20 days, the CADJPY price increased 17 days and decreased 3 Days.

• For every up day, there were 0.18 down days.

• The average return on days where the price increased is 0.339%.

• The average return on days where the price decreased is -0.3506%.

• Over the past 20 Days, the price has increased by 0.048% percent.

• Over the past 20 days, the average return per day has been 0.0024% percent.

• Over the past 20 days, The price has on average been accelerating: 0.0144¥ per day higher.

• Over the last session, the price increased by 0.6768 ¥.

• Over the last session, the price increased by 0.0062 %.

• Over the last session, the price accelerated by 0.4563¥.