Good day traders,
T.G.I.F fam, it was a rough trading week for us, the market seem to be stagnant, and the few movements where uncharacteristic of most pairs we trade.
That said, let’s get into the charts and see if we could trade one particular setup I have been eyeing.
1. CAD/JPY
If you remember vividly, this setup was analysed on Tuesday, there was a breakout on the daily chart. However it ended up being a fakey.
Presently price has broken a resistance level (85.234), which was formerly a key support level on the daily chart. On the 4 hours chart, a descending channel has presented itself. and price is currently touching a another key resistance level (85.699).
If price should breakout through this resistance, we could see the bulls take price to the next possible resistance level (86.265). On the other hand, if price reverses at this level, we should see price hit the first possible support level (85.294), and if the bears are strong enough, price may hit the second possible support level (84.583).
My advice as always is: Be patient enough to wait for confirmation before taking the trade
That’s all we have for today, join us again on Sunday for our weekly analysis of the market.
Do have a grand weekend.
