CADJPY testing major resistance, prepare to sell
Sell below 87.82. Stop loss at 88.38. Take profit at 86.47.
Reason for the trading strategy (technically):
Price is testing major resistance at 87.82 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension) and we expect to see a strong reaction off this level to push price further down to 86.47 support (Fibonacci extension, horizontal swing low support).
Stochastic (21,5,3) is also approaching major resistance at 95% where a corresponding reaction could occur.
Reason for the trading strategy (technically):
Price is testing major resistance at 87.82 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension) and we expect to see a strong reaction off this level to push price further down to 86.47 support (Fibonacci extension, horizontal swing low support).
Stochastic (21,5,3) is also approaching major resistance at 95% where a corresponding reaction could occur.