Analysis of CAD/JPY – Potential Reversal and Bullish Move
On this CAD/JPY daily chart, we can observe the formation of a potential double-bottom reversal pattern near the 102.86 support zone. The price has rebounded from this area, indicating strong buyer interest and a possible shift from the previous downtrend. This pattern suggests a possible bullish reversal if confirmed with a breakout above the recent highs.
Key Levels:
Support: 102.86 – This zone has been a strong demand area and has provided solid support for the price.
Resistance: 115.76 – The first resistance to break is at 107.23. If this level is breached, we could see further upside toward 115.76.
Technical Indicators:
Moving Average: The chart includes a moving average (blue dotted line), which is currently slightly above the price. If the price manages to break above the moving average, it could signal a continuation of the bullish momentum.
Momentum Indicators: The lower panel shows the TDIGM oscillator indicating a positive upward curve. This suggests that momentum is gradually shifting in favor of the bulls. If this trend continues, it would further confirm the potential for a bullish reversal.
Bullish Scenario:
If the price breaks above 107.23, it would confirm the double-bottom pattern and could lead to a strong upward move toward 115.76, providing a solid risk-to-reward ratio for long positions.
Entry: A possible long entry could be placed just above 107.23, confirming the breakout.
Stop-Loss: The stop-loss can be placed just below the support level around 102.86 to manage risk effectively.
Target: The first target could be set near 115.76, offering a favorable risk-to-reward ratio.
This setup is showing potential, but as always, wait for confirmation before entering any trades.
Bearish Scenario:
If the price fails to break above the 107.23 resistance and falls back toward 102.86, this would invalidate the bullish setup and could lead to further downside, potentially breaking the support and heading lower.
Happy trading!
Key Levels:
Support: 102.86 – This zone has been a strong demand area and has provided solid support for the price.
Resistance: 115.76 – The first resistance to break is at 107.23. If this level is breached, we could see further upside toward 115.76.
Technical Indicators:
Moving Average: The chart includes a moving average (blue dotted line), which is currently slightly above the price. If the price manages to break above the moving average, it could signal a continuation of the bullish momentum.
Momentum Indicators: The lower panel shows the TDIGM oscillator indicating a positive upward curve. This suggests that momentum is gradually shifting in favor of the bulls. If this trend continues, it would further confirm the potential for a bullish reversal.
Bullish Scenario:
If the price breaks above 107.23, it would confirm the double-bottom pattern and could lead to a strong upward move toward 115.76, providing a solid risk-to-reward ratio for long positions.
Entry: A possible long entry could be placed just above 107.23, confirming the breakout.
Stop-Loss: The stop-loss can be placed just below the support level around 102.86 to manage risk effectively.
Target: The first target could be set near 115.76, offering a favorable risk-to-reward ratio.
This setup is showing potential, but as always, wait for confirmation before entering any trades.
Bearish Scenario:
If the price fails to break above the 107.23 resistance and falls back toward 102.86, this would invalidate the bullish setup and could lead to further downside, potentially breaking the support and heading lower.
Happy trading!
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.