CADJPY Short: Possible Squeeze Breakout to Pivot Cluster
Updated
CADJPY has entered a low volatility squeeze on the 1 hr chart. The Chikou span (lagging span) is crossing Senkou Span (leading span) A, an indication that bearish price action may be forthcoming. Price has crossed below the cloud to mark the end of a weeklong bull run. A bearish Wolfe Wave setup has completed and price has begun its movement toward the 1-4 target line. A strong resistance trendline sits above price which could restrict bullish movement in the 92.820 area. My current bias is short, waiting for a breakout of the squeeze. A short target is set at the cluster of unhit pivots with a SL above the S/R trendline.Trade active
I've entered short on a smaller TF Wolfe Wave setup. First target is at the new weekly pivot, second target is at the November pivot as shown:Trade closed: stop reached
SL hit -22pips. The next sell area I will be looking for is a bearish Wolfe wave on a higher TF. If and when the setup is complete and ready to trade I will update this idea and link to a new chart:
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