We got stopped out of our CADJPY trade yesterday. Please see the chart. If 5/6/2010 was caused by global fear and was a “fluke”, the CADJPY would have broken to the upside yesterday. It was a perfect Ichimoku setup to go bullish again. When it penetrated the downward movement, it showed that 5/6/2010 is not a fluke. There is a very high possibility that we can retract all the way back down. In fact, if you look at AUD/CHF or AUD/USD, they have retraced completely back to the low’s on that panic day.
It is unfortunate we got stopped out but it was a good test. The sentiment now for CADJPY is bearish until the charts tell us otherwise.
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