The CADJPY pair has been trading within a Bullish Megaphone as outlined by our last analysis almost two months ago:
As you see the Fibonacci Channel helped to very efficiently identify the pressure points and the price moved exactly as per our trading strategy. As seen, it found support on the 1D MA50 (blue trend-line) and rebounded, imitating the pattern of March 15 - May 15 2021. Yesterday it almost hit the Higher Lows trend-line of the Megaphone and is being rejected currently. As the 1W RSI Double topped in the same fashion as late May, it is more likely that this was the top on the medium-term.
It is now that the Fibonacci levels will come in play again and if the pattern continues to replicate the 2021 one, expect a strong correction during the summer months towards the 1.5 Fib level, were the price should find support within the 1D MA200 (orange trend-line) and the 1W MA50 (red trend-line), or earlier if they rise faster.
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As you see the Fibonacci Channel helped to very efficiently identify the pressure points and the price moved exactly as per our trading strategy. As seen, it found support on the 1D MA50 (blue trend-line) and rebounded, imitating the pattern of March 15 - May 15 2021. Yesterday it almost hit the Higher Lows trend-line of the Megaphone and is being rejected currently. As the 1W RSI Double topped in the same fashion as late May, it is more likely that this was the top on the medium-term.
It is now that the Fibonacci levels will come in play again and if the pattern continues to replicate the 2021 one, expect a strong correction during the summer months towards the 1.5 Fib level, were the price should find support within the 1D MA200 (orange trend-line) and the 1W MA50 (red trend-line), or earlier if they rise faster.
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** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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👑Best Signals (Forex/Crypto+70% accuracy) & Account Management (+20% profit/month on 10k accounts)
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.