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Market View

A potential reversal for CADJPY

Friday, September 21, 2018 4:56 PM GMT

For 2 weeks the CADJPY has been moving upwards. Earlier today BoC announced Consumer Price Index (YoY) [1.7%], while actual Canada Retail Sales (MoM) [0.3%] were higher than the previous one [-0.1%], as a result, the pair has boosted to the upside once again.

Beginning with the weekly timeframe, CADJPY is still testing the 61.8% Fibonacci retracement level which acts a major resistance. In the meantime, CCI is heading into the oversold zone.


In the daily timeframe, RSI is currently flirting with the oversold area, which may indicate a possible bullish momentum slow down.


According to H4 timeframe, the pair has already formed a Doji candlestick, while it’s worth noting a clear negative Stochastics divergence, which strengthens a potential reversal setup.


Overall, this scenario may offer selling opportunities to sellers.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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