CAD/JPY: 1-hour
Here’s another potential triangle setup on a Loonie pair! CAD/JPY is just beginning to form a descending triangle pattern on its 1-hour forex time frame, as price is currently testing the support at the 94.50 minor psychological level. A bounce could take place since stochastic has already reached the oversold area and the 100 SMA is moving above the longer-term 200 SMA. If so, CAD/JPY could make it back to the triangle resistance near the 95.00 to 95.50 levels, which might keep gains in check. However, if Loonie bears are able to gather enough strength to push for a breakdown, the pair could fall by around 300 pips or the same size as the triangle pattern. Better review our lesson on How to Trade Breakouts if you’re waiting for one to happen!
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