CADJPY Step-By-Step Analysis - BUY

FX:CADJPY   Canadian Dollar / Japanese Yen
Hey, this is a step-by-step post - how I found this Buy area.

1. Currently, there are short term lower lows and lower highs which guided the price down in downwards channel. At the moment, there are almost perfect highs which allow drawing a perfect channel and I'll wait for a bounce around the projected bottom trendline:

Basically, copy/past the upper trendline and drag it into the last confirmed low (8. March)

2. Okay, now we have an area where the price may make a reversal but this trendline is not enough to convince me to take a trade. Let's search more, and soon after I looked it I saw that the waves from the top to the trendline touch may be equal and they are, perfect! ABC Equal waves:

As You see the blue box is not there without a reason, but we need more, more and more :D

3. Actually, those two was the main reasons why I try to trade this area but as said, I need more. The next criterion is the Fibonacci and Fibonacci 50% retracement level. Fibo has three major retracement levels:
38% - momentum movements
50% - a bit slower rejection
62% - golden ratio

Now, we have three price action criteria matching each other in one area, nice!

4. Support level:

One clean bounce area which has worked previously as support, matching exactly with our marked blue area.

Those are the major reasons why I marked this area as a possible short-term bounce opportunity.

Currently, You have to consider a thing that the price approaching this blue area pretty sharply. So, it is safer to wait for a bullish candlestick pattern formation on the bounce area because this area is not so precise.

5. Wait for a bullish candlestick pattern on the marked area: Bullish Engulfing , Hammer , Tweezer bottom , Railroad Tracks, Morning Star

Do not forget to support my idea post by hitting the "LIKE" button!
Thank You!

Have a nice day,

*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
I think Gold will have to be watched closely in order to trade CAD pairs successfully over the next few weeks.

Anyhow, that's what I am looking at currently:

@MRZSKV, what is the ralationship gold with cad?
MRZSKV aristotelis.tso
@aristotelis.tso, the correlation between CAD and gold is surely not as strong as it is with oil. However, Canada is still one of the major gold producers in the world. Hence, looking at how gold appears close to make another move (potentially retesting the latest highs), I'd keep an eye on it as much as on oil.
@MRZSKV, thanks a lot!
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