Sachin Kotecha
Sach Capital Limited
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 provided by Sachin Kotecha and/or Sach Capital Limited is for illustrative and educational purposes only and is not considered financial advice. Sach Capital Limited can’t be held liable for your trading losses. Sach Capital Limited does not in any way guarantee that this information is free from mistakes or errors. Trading CFDs, Spread Bets, and Foreign Exchange carries a high level of risk to your capital and may not be suitable for everyone. Ensure you fully understand the risks involved and seek independent advice if necessary.
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