Focus on CADJPY: Pre-London Session AnalysisHi traders,
The focus today is on CADJPY during the pre-London session. I believe we have a bullish setup forming, often referred to as a Late Session Reversal or Late Day Reversal.
Price Analysis
The bullish move in CADJPY began late during the New York session yesterday.
The overall trend has been bearish, with the last leg showing a 3-wave extension below the accumulation zone.
Interestingly, the downtrend's origin was marked by a momentum high, suggesting that price should, at a minimum, retest that level.
So far, we've seen a completed bullish wavestructure with accumulation forming above High 3, indicating strong buyer interest.
The plan is to buy into the next bullish wavestructure once price breaks above the current internal momentum high.
Our initial target is 107.45 (the Momentum High).
Fibonacci Analysis
Using Fibonacci from the Low (0) to High (3), we see indications of further bullish potential.
The High (5) or Internal Momentum High stalled at T1 (23.6% extension) of the 0-3 wave.
This signals a likely continuation with a stronger second wave structure, aiming towards the Major Extension 1 (107.993)
Wishing you a successful trading week!
