CAD/JPY is Close to Confirm Bearish Wave 5

Ahmed Darwish Forex Community

Hi traders,

CAD/JPY pair is in a strong downtrend but it made a deep bullish correction ... It seems like this is part of wave 4 but it remains to be seen whether the bearish correction is completed or not.

We will review different scenarios as the pair can either bounce for an uptrend continuation or expand the bearish correction within wave 4.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

CAD/JPY Wave pattern

As shown in the below chart, the pair is moving in a strong downtrend and has made a correction acctually this correction is part of wave 4... And here are the main conclusions:

Typical Fib Count of Wave 4 is 38.2 %, 50 % and sometimes can be 61.8% of wave 3.
The price now at 50 % Fib level, which can be a bouncing spot and also wave 4 can be expanded to 61.8%.

So the pair now in a critical zone and from my point of view we are looking only for sell opportunities as its matches with the expected wave pattern.

CAD/JPY SWAT CHART

Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns... Here are the main conclusions to consider:

Need the price to break the 21 Ema with a strong bearish candle to test the 144 EMA (first entry and target ).
Breaking the 144 Ema with a strong candle will be our entry for long setup and our target is the previous low.
Always advice to trailing stops and protect profits.

So at the moment, I am awaiting confirmation to trade this pair.

Good trading,

Ahmed

Author

Ahmed Darwish

Forex Community

Full time trader, Ahmed Darwish has a bachelor degree in accounting and has been working in Forex since 2011. He publishes his analysis article in two languages (Arabic and English) in different Forex websites.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.