CADJPY setup, what's next? 👀
• CADJPY has shown significant movements lately, especially noted after it fell sharply below the key level of 107.500. This drop was mainly due to market speculation about the BoJ possibly raising interest rates next year.
• On a more detailed look using a 4-hour chart, the currency pair managed to briefly rise above the resistance level, reaching 108.000 but failed to stay above.
• In an even shorter term perspective, like the 1-hour chart, CADJPY is moving within a narrow triangle range. This shows that traders are currently uncertain and the market is indecisive, with no clear direction whether to move up or down.
Potential Entry Points:
• Bearish Scenario: If the pair fails to break above the current resistance at 107.50 and shows signs of weakness, a potential entry point for a short position could be near this resistance level. The target for this trade would be a move back towards the 104.250 level.
• Bullish Scenario: Conversely, if CADJPY successfully breaks and holds above the 107.500 resistance, it could signal a continuation of the upward trend. In this case, a potential entry point for a long position would be after a confirmed break above the resistance, targeting monthly pivot level near 109.065.
• On a more detailed look using a 4-hour chart, the currency pair managed to briefly rise above the resistance level, reaching 108.000 but failed to stay above.
• In an even shorter term perspective, like the 1-hour chart, CADJPY is moving within a narrow triangle range. This shows that traders are currently uncertain and the market is indecisive, with no clear direction whether to move up or down.
Potential Entry Points:
• Bearish Scenario: If the pair fails to break above the current resistance at 107.50 and shows signs of weakness, a potential entry point for a short position could be near this resistance level. The target for this trade would be a move back towards the 104.250 level.
• Bullish Scenario: Conversely, if CADJPY successfully breaks and holds above the 107.500 resistance, it could signal a continuation of the upward trend. In this case, a potential entry point for a long position would be after a confirmed break above the resistance, targeting monthly pivot level near 109.065.