i want to bring your attention to this situation on CADJPY . Here we are on the 4hr chart but i usually start my top down analysis from the daily. On the daily i've outlined with the black line the structure level where price is sitting right now. This is the first thing i look for to create a case for entry.
Also, in the dialy timeframe price has recently gone oversold.
As we go down on the 4hr you can see how price has reacted to that level. At the first test there's a (long wick), at the second test price fails in making new lows.
What does it tell us? Maybe trend is changing.
In addition to that, the on this timeframe is in divergence.
All this clues together boost my confidence on this particular trade.
Stops below the low.
Target1 at 1,20 RR roughly, target2 to be determined.
If you want to share your viewpoint, please don't hesitate to comment.
Otherwise, see you in the next chart!