800 pips in the bank

In mid-December we put together a report on our Top 10 Trade Ideas for 2016. I outlined two and the first one is a fraction away from an 800+ pip return.

Here is an extract from what I wrote:

Miners will continue to extract raw materials and flood the market below where operating costs match profits and until producers are starved out and have to shut down. The economics are different in every commodity but years of supply are still in the pipeline.

Canada is woefully oblivious to the pain on the horizon. Despite a new government, new promised spending is minimal. The housing market is vulnerable and the investment capital that cushioned Canada during the crisis won't arrive this time.

Late in the year the Bank of Canada outlined a crisis playbook including QE, forward guidance and negative rates. Expect them to dip into it in 2016 and smash CAD lower in the process.

More broadly, the scope of the commodity carnage will catch markets off guard and trigger a flight to safety that boost the yen as the BOJ grows increasingly shy about deploying more stimulus.

THE TRADE:
Sell CAD/JPY at spot (half). Sell second half at 0.9000. Target 0.8000. Stop at 0.9400

CAD/JPY is trading at 0.8015.

My other trade idea hasn't been filled yet. Download the guide, it will only be available for a few more days.
Click To Get ForexLive's Top 10 Trade Ideas For 2016