Don't miss this long term opportunity on CADJPY !
Hi everyone ! I would like to share this trading setup with you. It is a pretty nice swing opportunity !
The pair CADJPY is near a long term support which could announce the end of the bearish trend that we see since January 5th. Plus, the RSI shows a bullish divergence which reinforce my feeling about a trend reversal.
If there is a rebound in the area of 81.00, the next horizontal resistance will be in the 83.40 area. If this level is broken then a bullish trend could take place only if the price breaks the oblique resistance that I identified on the chart.
The idea is to take profit at each key resistance in order to secure profits. Within the bullish trend I will try to identify a channel in order to buy all corrections reinforcing my initial long term position.
The plan is : Take profit, reinforce, take profit, reinforce... and I move the stop accordingly.
In addition, I think that technically, the weakness of the "Loonie" and the strengh of the Yen against all major currencies should really take a breath and push the pair very high maybe until 89.00 but... nothing is sur and it will take weeks to hit this level.
I will place a tight stop loss at 80.20. Below this point I will wait for a clear rebound to identify a new optimal entry.
Hope this analysis has been useful.
Thanks for reading !
Matt
The pair CADJPY is near a long term support which could announce the end of the bearish trend that we see since January 5th. Plus, the RSI shows a bullish divergence which reinforce my feeling about a trend reversal.
If there is a rebound in the area of 81.00, the next horizontal resistance will be in the 83.40 area. If this level is broken then a bullish trend could take place only if the price breaks the oblique resistance that I identified on the chart.
The idea is to take profit at each key resistance in order to secure profits. Within the bullish trend I will try to identify a channel in order to buy all corrections reinforcing my initial long term position.
The plan is : Take profit, reinforce, take profit, reinforce... and I move the stop accordingly.
In addition, I think that technically, the weakness of the "Loonie" and the strengh of the Yen against all major currencies should really take a breath and push the pair very high maybe until 89.00 but... nothing is sur and it will take weeks to hit this level.
I will place a tight stop loss at 80.20. Below this point I will wait for a clear rebound to identify a new optimal entry.
Hope this analysis has been useful.
Thanks for reading !
Matt