UPDATED POSITION (21st May 2021)
We are back in on the CADJPY as the set-up is still valid, the current price action looks like a corrective rally, overlapping in nature, meaning price action should continue to the downside.
Trade Setup: SELL Market Execution, current price 90.07, stop loss 90.77 and take profit 88.30.
Stop loss: 70 pips
Take profit: 177 pips
19th May 2021
Good morning team,
This morning we are taking a look at the CADJPY as the pair has broken down from a rising channel with a number of key technicals suggesting a bearish reversal opportunity.
CADJPY – Weekly Charts
There is a bearish divergence on the weekly charts which has provided great shorting opportunities previously. The market price is also at a major supply zone or resistance zone.
CADJPY Daily Charts
The recent move above the negative trend line resistance is possibly a fake breakout.
CADJPY 1 Hour Charts
There has now been a breakdown from the rising channel formation suggesting further downside awaits.
Trade Setup: SELL Market Execution, current price 90.20, stop loss 90.95 and take profit left open with our first target zone at 88.30.
Stop loss: 75 pips
Take profit target 1: 190 pips