Bullish harmonic scenario - More than 800 pips potential move
$CADJPY's weekly chart shows us that last week this pair failed to break below a major weekly structure zone (81-83). This structure zone (now support) managed to keep $CADJPY above it for almost 2 years between 2009 and 2011 (see blue arrows).
If this support zone will hold, we have potential aggressive C entry in what could turn out to be a weekly bearish Gartley that will complete near 113 (yellow pattern).
That's still way far ahead, but even if we will consider a rally to nearest weekly structure resistance (88-90), we see potential for 600-800 pips rally in $CADJPY.
The daily chart shows also smaller bearish Bat (red) with potential aggressive C setup:
With stop loss below 79-80, you can try and trade this potential Aggressive C entry for a bearish Gartley pattern (red) and also a daily double bottom that was created last week.
If Oil will continue its bullish weekly, and therefore CAD will gain strength, $CADJPY can become a very interesting, low risk high potential reward swing trading opportunity.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews for the week goo.gl/lzjBAf
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If this support zone will hold, we have potential aggressive C entry in what could turn out to be a weekly bearish Gartley that will complete near 113 (yellow pattern).
That's still way far ahead, but even if we will consider a rally to nearest weekly structure resistance (88-90), we see potential for 600-800 pips rally in $CADJPY.
The daily chart shows also smaller bearish Bat (red) with potential aggressive C setup:
With stop loss below 79-80, you can try and trade this potential Aggressive C entry for a bearish Gartley pattern (red) and also a daily double bottom that was created last week.
If Oil will continue its bullish weekly, and therefore CAD will gain strength, $CADJPY can become a very interesting, low risk high potential reward swing trading opportunity.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews for the week goo.gl/lzjBAf
To subscribe to the newsletters - goo.gl/HXjCPV
Follow my blog - goo.gl/78KZsl
Subscribe to my Youtube channel - goo.gl/q8dbyT
