Hi Traders! CADJPY long term buys and short term sells technical analysis is here. In this pair based on the multi-timeframe analysis method we are going to look for the evidences on three timeframes that is on the current trading timeframe and two timeframes higher, when we get evidences which supports our view on these three timeframes this makes the setup very reliable. Now lets start our analysis from the higher timeframe which will be the daily chart here.
CADJPY D1(Daily) Chart Analysis – Bullish Trend Pattern, Bearish Divergence, Stochastic Oscillator
On the daily chart the price which is moving higher has created a bullish trend pattern and currently it looks like this pattern is completing itself so as per the book we may now look for pullbacks to happen and once the pullback completes itself we may then look for evidences of bullish pressure in order to start looking for the buys. Currently we have a bearish divergence that has formed between the first high at 82.076 and the second high at 84.042 based on the MACD histogram indicator. In addition to this the Stochastic Oscillator has also reached its extreme. So based on this we may now look for short term sells and look for evidences on lower timeframes which supports this view.
CADJPY H4 (4 Hours) Chart Analysis – Bearish Divergence, Decreasing Volumes
On the H4 chart we have a bearish divergence that has formed between the first high at 83.303 and the second high at 84.259 based on the MACD histogram indicator. which we may consider as an evidence of bearish pressure. Another important factor here is the Volumes indicator (the Red and Green bars found at the bottom, below the price) in which we are looking at steady decline which we may consider as another evidence of bearish pressure.
CADJPY H1 (1 Hour) Chart Analysis – Bearish Convergence
On the H1 chart the price has created a classical setup, we had a bearish divergence and then the price moved lower and created lower lows thus forming a bearish convergence for us, we may consider this as an evidence of bearish pressure. As per the book scenario we may now expect pullbacks to happen and currently it looks like a pullback is happening. We may now look for bearish setups with more bearish evidences in order to start looking for short term sells.
Technical Analysis & Forecast Summary
CADJPY D1(Daily) Chart Analysis:
- Bullish Trend Pattern, Bearish Divergence, Stochastic Oscillator
CADJPY H4 (4 Hours) Chart Analysis:
- Bearish Divergence, Decreasing Volumes
CADJPY H1 (1 Hour) Chart Analysis:
- Bearish Convergence
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