My idea is based around the CAD/JPY which recently broke out of it consolidation period which lasted roughly two months.
It's currently closed at what I would interpret to be a long-tailed Doji at what looks to be the beginnings of a retracement. This has happened:
I'm expecting prices to retrace to roughly around the 0.618 retracement (97.701)
which is also backed by four previous resistance turned support structures. This level also correlates nicely with the Dow 0.5 retracement.
or
Prices to retrace to roughly around the 0.382 retracement level (96.623) which correlates nicely with the 0.618 retracement offered by the previous leg downwards. This is also an area of very strong support levels.
After the retracement I'm expecting the CAD/JPY to continue upwards.
It's currently closed at what I would interpret to be a long-tailed Doji at what looks to be the beginnings of a retracement. This has happened:
- after price hit the 0.318 Fib retracement which was produced by the last downtrend, and
- Price hit previous Kumo resistance.
I'm expecting prices to retrace to roughly around the 0.618 retracement (97.701)
which is also backed by four previous resistance turned support structures. This level also correlates nicely with the Dow 0.5 retracement.
or
Prices to retrace to roughly around the 0.382 retracement level (96.623) which correlates nicely with the 0.618 retracement offered by the previous leg downwards. This is also an area of very strong support levels.
After the retracement I'm expecting the CAD/JPY to continue upwards.