I believe there will be a good opportunity to sell CADJPY. This opportunity must rise after one of the following conditions is satisfied which are:
- The price should retrace back to 83.89 and once it reached this level the MACD should not break the indicated level in the drawing above. And for more confirmation look for Engulf bearish candle or any other reversal pattern. Once this condition satisfied I believe the good setup for trade will be as followed:
Sell price = 83.89
Stop-loss = 84.6
Take profit = 81.2
- The second condition which in case the price keeps dropping and did not retrace and broke the 82.9 level, then you also should wait for price retracing back to this broken level (82.9) with the same condition applied in MACD above, and here you will have a head and shoulder pattern which increase the probability of success in this trade and the setup can be as below:
Sell price = 82.9
Stop-loss = 83.6
Take profit = 79.9