CAD/JPY - Inverted Head and Shoulders
There are some amazing setups forming on the charts, here we have CAD/JPY on the daily chart with an inverted head and shoulders pattern.
The right shoulder is currently sitting on the 0.50 retracement level but it may complete at 0.618, which is an ideal level as pattern as a whole generally holds a better structure in this situation.
The neckline is bang on a key resistance level , closing above this would provide additional confirmation to go long.
BUT price could stall out on resistance and sell-off back down to the right shoulder since it is a pivot point in the market.
I'll be looking for extra validation in the near future.
Don't forget to add me on social media :)
The right shoulder is currently sitting on the 0.50 retracement level but it may complete at 0.618, which is an ideal level as pattern as a whole generally holds a better structure in this situation.
The neckline is bang on a key resistance level , closing above this would provide additional confirmation to go long.
BUT price could stall out on resistance and sell-off back down to the right shoulder since it is a pivot point in the market.
I'll be looking for extra validation in the near future.
Don't forget to add me on social media :)
Comment:
Price has now dropped to the 0.618 retracement level, I expect price to hold this support level.
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