CADJPY Long (Bear Trap)

See callout bubbles. If price wants to get down to the green highlighted area, I believe we could be in a bear trap situation considering the recent weakness in the JPY and the strength of Oil (although, I do believe that Oil is headed into and area where I expect sellers to be.) Additionally, the higher time frame charts would suggest that the CADJPY pair is in a pretty intact Uptrend.

Always measure your risk and be okay with being wrong ; )

Comment:

With the CAD news this week, price could simply continue higher from where it is, or drop into level and allow us to get our entry. CAD bears will be getting excited if price breaks downward, but obviously, we will want to trap them in the highlighted area and see a nice bullish reaction.

With Oil pressing through an area where we saw a nice selloff in the past, there may be some drag on the CAD, so that could work against us on this trade.

Always measure your risk and be okay with being wrong ; )