CADJPY Analysis4-Hour Chart Analysis
The 4-hour chart shows CAD/JPY in a clear downtrend with lower highs and lower lows. Key observations:
Price has been declining from around 110.500 to current levels around 103.079
Recently formed a potential double bottom around 102.500 level
Currently showing some consolidation/minor bounce from these lows
Price is below key moving averages (based on the chart structure)
1-Hour Chart Analysis
The 1-hour chart provides a closer look at recent price action:
Shows a recent bounce from the lows
Price has formed a small consolidation pattern
Currently at 103.079 with a -0.07% daily change
Some short-term resistance likely around 103.500-104.000 area
Trade Setup:
Direction: Looking for potential short entry
Entry Point: Enter short at 103.500-103.700 zone (on a rejection/failure to break higher)
Stop Loss: Place stop at 104.000 (approximately 30 pips from entry, matching your risk tolerance)
Take Profit: Target the recent lows at 102.500 area (100+ pip potential)
Risk-to-Reward Ratio: Approximately 1:3
Rationale:
The dominant trend is clearly bearish on larger timeframes
Recent bounce appears corrective rather than trend-changing
Previous support levels often become resistance on retests
The 103.500-104.000 zone should act as resistance
Alternative Scenario:
If price breaks above 104.000 with conviction, I would avoid entering and reassess the setup, as this could indicate a deeper correction or potential trend change.
Important Note:
Wait for price action confirmation at the resistance zone before entering (such as bearish engulfing, rejection candles, or failure to break higher with diminishing volume).
Order cancelled
did not got entry.Note
I thought it will be something like this:
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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.