Hi Traders! CADJPY short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
CADJPY D1(Daily) Chart Analysis – Bullish Trend, Bullish Hidden Divergence, ADX Indicator, Parabolic Sar
On the daily chart, we have a bullish trend and currently it looks like a correction is happening but there are no signs of trend change, so basically I expect this bullish trend to continue further. We also have a bullish hidden divergence that has formed between the first low that has formed on 20th September 2021 and the second low that has formed on 9th November 2021 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. Also, based on the Parabolic Sar we could see that the dot is below the price which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and look for evidences supporting this bullish view.
CADJPY H4(4 Hours) Chart Analysis – Range, Two Key Support Zones, ADX Indicator
Looking at the H4 chart, we could see that currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(90.729) Fibonacci expansion level of the first wave, 61.8%(90.419) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(89.642) Fibonacci expansion level of the first wave and 100%(89.648) Fibonacci expansion level of the second wave. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. Until both the key support zones hold my view remains bullish here. If we get a valid breakout above the top of this range we may then consider it as validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
CADJPY D1(Daily) Chart Analysis
- Bullish Trend, Bullish Hidden Divergence, ADX Indicator, Parabolic Sar
CADJPY H4(4 Hours) Chart Analysis
- Range, Two Key Support Zones, ADX Indicator
Trading Tips
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