CAD/JPY – Reversal Analysis
|If we look at the 1-day chart of CADJPY we can see that the price has been trending downwards since mid-April, this downward move was further solidified by a bearish Tenkan Sen & Kijun Sen cross within the Kumo. The price currently is in a corrective move which was supported by Chikou Span finding support upon Senkou Span B, the price on Friday's close has established resistance upon Tenkan Sen and it’s a critical price level that needs to be broken if we are to see a trend reversal. A daily break and close above Tenkan Sen would validate this outlook and an upward move toward Kijun Sen would be foreseeable at price level 82.643.
Looking at the 4-hour chart of CADJPY we can see that the price on Friday found resistance on the Kumo following a bullish Tenkan Sen and Kijun Sen cross below the Kumo suggesting a weak reversal scenario. As Chikou Span is firmly within the price, it is more than likely we will see price ranging in the short-term, a Kumo breakout on the 4-hour chart would be a good buy signal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.