CADJPY Technical Analysis And Short Term Forecast

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CADJPY Technical Analysis And Short Term Forecast

Hi Traders! CADJPY technical analysis and short term forecast 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 – Bearish Divergence, Stochastic Oscillator

On the daily chart, the price which was moving higher has created a bearish divergence that has formed between the first high that has formed at 101.858 and the second high that has formed at 107.210 based on the MACD indicator which we may consider as evidence of bearish pressure. After the first move down, currently it looks like a correction is happening. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and currently there are no signs opposing this short term bearish view. We may now move down to lower timeframe and look for evidences supporting this short term bearish view.
CADJPY Technical Analysis And Short Term Forecast

 

 

CADJPY H4(4 Hours) Chart Analysis – Bearish Divergence, RSI Indicator

Looking at the H4 chart, we could see that after the first move down currently it looks like a correction is happening in the form of potential double wave to the upside. Also, we have a bearish divergence that has formed between the first high that has formed at 105.838 and the second high that has formed at 106.232 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. A valid breakout below the most recent uptrend line would be the validation for this short term bearish view.
CADJPY Technical Analysis And Short Term Forecast

Technical Analysis & Forecast Summary

CADJPY D1(Daily) Chart Analysis 

  • Bearish Divergence, Stochastic Oscillator

CADJPY H4(4 Hours) Chart Analysis 

  • Bearish Divergence, RSI Indicator

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to

Join Traders Academy Club Now

And improve your trading with us.

Also, you can get one of our strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team

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