CADJPY POSSIBLE REVERSAL IN PLAY?
Earlier I posted a CADJPY target for a SHORT, which did not meet its target.
At this point, price has broken ABOVE and closed hourly above the downward channel resistance.
With observance of a bullish divergence in RSI with price, a loss in selling momentum is seen.
The CAD has depreciated the most in the past weeks, and is heavily oversold.
Also, the JPY has appreciated the most in the past week, and is heavily overbought.
These may not mean much to those who say oversold conditions can become more oversold,
but what I'm trying to re-iterate at is in these conditions, there will be countless positions to be squeezed out, and fast, if positions were to unwind.
Take note of this breakout and watch closely for opportunities, this may be a good time to consider a short term LONG, and setting stops below the downward channel's resistance in case the pair moves back into the channel.
At this point, price has broken ABOVE and closed hourly above the downward channel resistance.
With observance of a bullish divergence in RSI with price, a loss in selling momentum is seen.
The CAD has depreciated the most in the past weeks, and is heavily oversold.
Also, the JPY has appreciated the most in the past week, and is heavily overbought.
These may not mean much to those who say oversold conditions can become more oversold,
but what I'm trying to re-iterate at is in these conditions, there will be countless positions to be squeezed out, and fast, if positions were to unwind.
Take note of this breakout and watch closely for opportunities, this may be a good time to consider a short term LONG, and setting stops below the downward channel's resistance in case the pair moves back into the channel.
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