CAD/JPY at Key Support Zone: High-Probability Trading Scenario
he CAD/JPY is approaching a critical support zone (107.50 - 108.00) on the daily chart, providing multiple trading opportunities based on key technical setups. Here's a breakdown of potential scenario
Scenario 1: Buy at Key Support (107.2 - 105.7)
Rationale:
Trade Parameters:
The strategy offers a great probability of success, supported by strong technical confluences and favorable risk-reward dynamics.
Monitor price action and volume closely ON LOWER TIMEFRAMES to validate entries.
Scenario 1: Buy at Key Support (107.2 - 105.7)
Rationale:
- Strong confluence of support from prior lows (point B), ascending trendline, and Fibonacci retracements.
- TDI Indicator is near oversold levels with bullish divergence, signaling a potential reversal.
- High probability of a bounce from this support zone.
Trade Parameters:
- Buy Zone: 107.2
- Stop Loss: 105.7
- Take Profit Targets:
- Target 1: 114.6 (intermediate resistance)
- Target 2: 118.6
- Risk-Reward Ratio: 1:4
The strategy offers a great probability of success, supported by strong technical confluences and favorable risk-reward dynamics.
Monitor price action and volume closely ON LOWER TIMEFRAMES to validate entries.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.