CADJPY has had a Bullish run on the H4 chart. Yesterday, the pair produced a Double Top on the H4 chart and then came down with huge selling pressure. The pair has been on a correction at the moment. The price already had a rejection from a level, which has the potential to be a strong level of Resistance and drive the price further down. Let us have a look at the H4-CADJPY chart.
Have a look at those two H4 Bearish candles. Then, at the time of the correction, the price had a rejection from the level of 84.360. If the price goes back there again, and it produces an H4 Bearish Engulfing Candle breaching the level of 83.895, then selling the pair would get us green pips with an excellent risk and reward ratio. Let us have a look at the summary of the trade…
- Entry- H4 Bearish Engulfing Candle at 84.360 breaching the level of 83.895
- Stop loss- Above 84.360
- Take profit- 82.980
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The USD has a super high impact news event today at GMT 13.30. The CAD and the JPY both are highly correlated currency with the USD. Especially, the CAD is very similar to the USD when it makes a pair with other currencies. Thus, we have to wait for the news hour to be finished to take the entry. By looking at the chart and the schedule, I assume that if the signal comes at GMT 14.00, then it would be a good signal to take.
The post CADJPY Price Action Analysis – 1st June 2018 appeared first on Advanced Forex Strategies.
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