CADJPY | Bulls take 82.70 - more upside to come
Look at how aggressively price took out the swing highs I have marked by points 1 and 2 in the chart.
Early on last week, this chart would have looked very bearish - the gap open and two days of selling would have tickled the swing traders pink.
However, by COB Wednesday, those same traders would have been worried. Price wicked lower, suggesting a fall was to come, only to thrash back up and close on the high...a pool of liquidity eaten up providing the fuel needed to take 82.70 the next day.
Given the battle we saw at this level, and how the bulls have so stunningly won (so far), I'm inclined to jump in with them.
What I would like is a retest down to 82.70 on the 4- or 8-hour charts, followed by a hint of a bounce. First profit target at 84.00
Early on last week, this chart would have looked very bearish - the gap open and two days of selling would have tickled the swing traders pink.
However, by COB Wednesday, those same traders would have been worried. Price wicked lower, suggesting a fall was to come, only to thrash back up and close on the high...a pool of liquidity eaten up providing the fuel needed to take 82.70 the next day.
Given the battle we saw at this level, and how the bulls have so stunningly won (so far), I'm inclined to jump in with them.
What I would like is a retest down to 82.70 on the 4- or 8-hour charts, followed by a hint of a bounce. First profit target at 84.00