CHF/JPY +138

by know everybody knows that JPY is just getting stronger and stronger. When we have "flight to safety" in currency world, that means that people are selling AUD, CAD, NZD, GBP, and EUR, and buying JPY, USD, and CHF. In this case we have battle of the two "safety nets". Both central banks are saying that their currency is too strong and that will have an effect on their economy. They might be right, but that will not stop traders from buying their currency. Both of the central banks tried and experienced the pain of intervention on the currency market that did not lead them anywhere. To make this short; JPY is overboght on so many levels, and we have some what of Risk-on on the market. Technical aspect will help our trade, but needles to say that we have to keep an eye on market developments, cause things get get ugly "in a jiffy" :)

CAD/JPY +115

new lows are reached on this pair 72.13, and some would say "why would you try to catch falling knife"? Well, there is several reasons for it. Of course that we know that market is selling off risk (CAD), and buying safety (JPY). On top of everything oil is reaching new lows,S&P & Dow are also reaching new lows. This trade is based on premise that people are going to stop and think very carefully about selling more than this level on many markets, even if the news that is coming out is not all that great. That would in our opinion open door for much lower levels, and our trade would be liquidated in a "jiffy":)
If markets stop and think about it before make the next move, our trade makes perfect sense. It would make a great profit if someting good happens on the market. After all, even the selling has it's stoping point.
Slow Stochastic looks tired from pointing lower :)
Stops are placed at 71.60 and target is 73.40