Market view and Analysis

Market view and Analysis

Today we will be looking at the CADJPY an interesting pair heavily influenced by oil on the CAD side.

CAD is under pressure following some disappointing economic data. Japan is showing tentative signs of a recovery but it’s too early to say yet.

Daily Overview

We will start on the daily chart and focus in on the lower time frame, we note the highs in October 2018 of 89.22 and then we fell off this level and moved sideways around the 87.00/85.00 area for the end of 2018 until we had a good steady fall to 77.68 including the flash crash. 

But we have now retraced that move passing the 23.6% fib of 80.403 and now we are held around the 38.2% fib at 82.088. We may look to hold this level due to the fib and the support now resistance (June 2018) at 82.45.

As we start the UK trading session we note our daily candle is looking negative and may engulf yesterdays.

4 Hour Overview

Looking at the 4 hour chart we see the previous touch of the 82.45 area and Wednesdays candle was another rejection of this level then yesterday we confirmed a negative, so will look to see if we continue lower. 

With 81.279 coming into focus. 

Trade Idea

We will be looking for a Sell trade on the CADJPY.

We will be trading a move below support

We are trading off the 4 hour Chart.

We will have an appropriate trade size for our account!

Our entry will be ideally below 81.95

Our trade will be invalidated with a 4 hour close above 82.45

Our stop loss will be 25 pips from entry.

Our target will be 81.28

Happy Trading!

Enter your e-mail address to receive updates straight to your inbox

My Newsletter

You can easily unsubscribe at any time by clicking on the unsubscribe links at the bottom of each of our emails

About Author