Analysis of CAD/JPY (1H Chart)
Trend Reversal & Breakout:
The price previously moved within a descending channel but has since broken out to the upside.
This breakout indicates a shift in market structure from bearish to bullish.
Key Resistance at 106.203:
The chart suggests a bullish target around the 106.203 resistance level.
If price reaches this level, we could see either a breakout continuation or a rejection.
Potential Pullback:
The blue arrow suggests a potential pullback before a continuation upwards.
The RSI is approaching overbought territory, which may lead to a short-term correction before resuming the uptrend.
RSI & Momentum:
The RSI is near 68.81, indicating strong momentum but approaching overbought conditions.
A temporary pullback may occur to relieve overbought pressure before another upward move.
Conclusion:
Bullish Bias: CAD/JPY is showing strong bullish momentum, but a temporary retracement may occur before further upside.
Key Levels:
Support: Watch for a pullback towards the previous resistance-turned-support (possibly around 103.5-104).
Resistance: 106.203 is the next major upside target.
Trade Idea: Consider entering long positions on pullbacks with confirmation, targeting the 106 area.
Trend Reversal & Breakout:
The price previously moved within a descending channel but has since broken out to the upside.
This breakout indicates a shift in market structure from bearish to bullish.
Key Resistance at 106.203:
The chart suggests a bullish target around the 106.203 resistance level.
If price reaches this level, we could see either a breakout continuation or a rejection.
Potential Pullback:
The blue arrow suggests a potential pullback before a continuation upwards.
The RSI is approaching overbought territory, which may lead to a short-term correction before resuming the uptrend.
RSI & Momentum:
The RSI is near 68.81, indicating strong momentum but approaching overbought conditions.
A temporary pullback may occur to relieve overbought pressure before another upward move.
Conclusion:
Bullish Bias: CAD/JPY is showing strong bullish momentum, but a temporary retracement may occur before further upside.
Key Levels:
Support: Watch for a pullback towards the previous resistance-turned-support (possibly around 103.5-104).
Resistance: 106.203 is the next major upside target.
Trade Idea: Consider entering long positions on pullbacks with confirmation, targeting the 106 area.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.