CADJPY LONG TERM TRADE PLAN: WILL THE DOUBLE BOTTOM PLAY OUT?

Canadian Dollar / Japanese Yen (FX:CADJPY)

Updated

FX:CADJPY Canadian Dollar / Japanese Yen

This pair has formed a double bottom on the weekly chart but a resistance cluster hinders the neckline breakout required for the pattern to play out. The combination of resistance at the neckline, 1W MA 50 and 1D MA 200 are capable of invalidating the pattern. A rejection from this cluster will most likely be supported by the MARCH 2000 HIGHER LOWS TREND LINE. This 3 years old trend line can provide a powerful launchpad for a breach of the resistance cluster. We can look for a long trade if the breach of this cluster happens. But it fails and the trendline fails to support the price drop, we can look for short upon the breach of the trendline

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CADJPY LONG TERM TRADE PLAN: WILL THE DOUBLE BOTTOM PLAY OUT?

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