CADJPY Reversal Chart Pattern For Sure?!
Risk appetite appears to have improved somewhat during the Asian session, and the Loonie has been the strongest among the comdoll bunch.
This is likely because the commodity currency is having some strength after Canadian data and a pickup in crude oil as well. After all, there are speculations that the OPEC could consider an increase in output cuts or at least an extension of their agreement in order to prop prices up.
On the flip side, the LYSH yen is losing ground to risk-on flows while also facing the possibility of a Q4 GDP contraction.
With that, I’m looking at this inverted head and shoulders breakout on CAD/JPY, especially since the pair appears to be making a retest of the broken neckline.
If you think that this reversal is about to gain friction from here, shorting in at market with a stop that’s enough to weather the pair’s average daily volatility 50.3 pips could be a good play.
This is likely because the commodity currency is having some strength after Canadian data and a pickup in crude oil as well. After all, there are speculations that the OPEC could consider an increase in output cuts or at least an extension of their agreement in order to prop prices up.
On the flip side, the LYSH yen is losing ground to risk-on flows while also facing the possibility of a Q4 GDP contraction.
With that, I’m looking at this inverted head and shoulders breakout on CAD/JPY, especially since the pair appears to be making a retest of the broken neckline.
If you think that this reversal is about to gain friction from here, shorting in at market with a stop that’s enough to weather the pair’s average daily volatility 50.3 pips could be a good play.
Related publications
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.