CAD/JPY Levels: High-Probability Short and Long Setups
CAD/JPY pair has shown a consolidation pattern and recent recovery following a sharp drop from highs near 118.80. After this correction, price has established a support base around 104.50 and has recently climbed back to 111.00, encountering a significant resistance level.
On the daily chart, CAD/JPY shows resistance near the 50 and 200-period moving averages, suggesting potential pressure around the current level. The TDI indicator signals divergence in the overbought zone, reinforcing the likelihood of a short-term reversal or correction.
Additionally, CAD/JPY is trading within a long-term ascending channel, providing mid-term buy and sell opportunities around key levels.
Setups
1️⃣ Sell at Resistance with Reversal Setup
Entry: 111.00
Stop Loss (SL): 112.20
Take Profit (TP): 106.00
Rationale: CAD/JPY faces technical resistance at this level. The overbought signal combined with divergence on the TDI increases the probability of a short-term pullback. This setup targets a potential price retreat to the next support near 104. If SL is hit, this would indicate continuation, invalidating the setup.
2️⃣ Buy on Pullback to 50-Period Moving Average
Entry: Await price correction towards 50 MA for optimal entry
Take Profit (TP): 113.00
Risk-Reward Ratio: 1:2+
Rationale: In line with the CAD/JPY recovery trend within the ascending channel, this strategy captures a retracement entry on the 50 MA, often acting as dynamic support. The TDI signals suggest mild overbought easing, supporting this strategy with controlled risk.
CAD/JPY is trading at a crucial technical level, where buyers and sellers are battling near 111 zone. Analysis suggests a likely short-term reversal toward support or a potential break above resistance, continuing the long-term trend. The outlined strategies address these scenarios with defined entry, SL, and TP levels, optimizing return potential while managing risk. We recommend closely watching for confirmations at resistance and support in lower timeframes before taking positions.
📈 As always, monitor price action closely! 📉
On the daily chart, CAD/JPY shows resistance near the 50 and 200-period moving averages, suggesting potential pressure around the current level. The TDI indicator signals divergence in the overbought zone, reinforcing the likelihood of a short-term reversal or correction.
Additionally, CAD/JPY is trading within a long-term ascending channel, providing mid-term buy and sell opportunities around key levels.
Setups
1️⃣ Sell at Resistance with Reversal Setup
Entry: 111.00
Stop Loss (SL): 112.20
Take Profit (TP): 106.00
Rationale: CAD/JPY faces technical resistance at this level. The overbought signal combined with divergence on the TDI increases the probability of a short-term pullback. This setup targets a potential price retreat to the next support near 104. If SL is hit, this would indicate continuation, invalidating the setup.
2️⃣ Buy on Pullback to 50-Period Moving Average
Entry: Await price correction towards 50 MA for optimal entry
Take Profit (TP): 113.00
Risk-Reward Ratio: 1:2+
Rationale: In line with the CAD/JPY recovery trend within the ascending channel, this strategy captures a retracement entry on the 50 MA, often acting as dynamic support. The TDI signals suggest mild overbought easing, supporting this strategy with controlled risk.
CAD/JPY is trading at a crucial technical level, where buyers and sellers are battling near 111 zone. Analysis suggests a likely short-term reversal toward support or a potential break above resistance, continuing the long-term trend. The outlined strategies address these scenarios with defined entry, SL, and TP levels, optimizing return potential while managing risk. We recommend closely watching for confirmations at resistance and support in lower timeframes before taking positions.
📈 As always, monitor price action closely! 📉
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