As expected, CAD / JPY moved by 3,000 pips, opening a new opportunity for short positions.
In fact, at the time of writing, the pair is trading near all-time highs, which means that if the quote breaks through 91.5, the total gain will be 17,000 pips. This is an extremely rare occurrence, especially since CAD / JPY has not pulled back even once in the past month.
However, a certain pattern remains, where after very strong price movements, cross-rates undergo deep corrections.
Therefore, after breaking through all-time highs, CAD/JPY will most likely turn around and move downwards. Traders can take this opportunity to set up sell limits every 500 pips, and may do so up to 5,000 pips. Then, all trades should be closed at the mirror levels.
This strategy follows the framework of Grid Trading.