Looking at the CADJPY daily chart, we can observe a potential corrective pattern forming. The price action has been showing signs of consolidation near the marked blue box support zone around the 105.00 level. If the price respects this support area without breaking below it, and we see a strong bullish reaction, this could set up an interesting opportunity. The key observation here is that any significant bounce from this zone could trigger a broader upside move.
Should we see such a reaction materialize, the pair might gain enough momentum to challenge and potentially break above the November 2024 high, which sits around the 111.50 level. This scenario would be particularly compelling if we see clear rejection of prices above the blue box support, formation of bullish price action patterns at current levels, and strong momentum on the initial bounce. However, traders should remain cautious and wait for clear confirmation of the bullish reversal before considering long positions, as the current downward momentum would need to be definitively broken first.
Should we see such a reaction materialize, the pair might gain enough momentum to challenge and potentially break above the November 2024 high, which sits around the 111.50 level. This scenario would be particularly compelling if we see clear rejection of prices above the blue box support, formation of bullish price action patterns at current levels, and strong momentum on the initial bounce. However, traders should remain cautious and wait for clear confirmation of the bullish reversal before considering long positions, as the current downward momentum would need to be definitively broken first.
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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.