Wednesday, May 20, 2015
New Correlation Trade CAD/JPY to GBP/JPY
As of 05/20/2015 @ 19:22 EST:
The Global Currency Scalper is taking the following trade: Long CAD/JPY & Short GBP/JPY
The correlation between these two pairs is 77% over the past year. The widest the spread has got over that time is about 800 Pips. Currently these two pairs are 620 Pips apart. The GBP/JPY has enjoyed a nice run-up lately which may be stretched, bumping up against some near term resistance.
With that said we will be entering 1/2 our intended position size with the intentions of easing into the second half if the spread widens significantly. We expect to see this spread narrow over the coming days/weeks. If it happens before we can put our entire position on we will feel comfortable closing out the position with a profit of any amount.