CADJPY Testing Resistance, Prepare For A Drop
Sell Below 85.25. Stop loss at 86.06. Take profit at 83.51.
Reason for the trading strategy (technically):
CADJPY is approaching its major resistance at 85.25 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement, 50% Fibonacci retracement, horizontal swing high resistance) where we expect to see a reversal, causing price to push down to its support at 83.51 (38.2% Fibonacci retracement, 50% Fibonacci retracement, Horizontal pullback support).
Stochastic (89, 5, 3) is approaching its resistance at 97% where we expect to see a reversal. We have also identified a bearish divergence with price which contributes to our bearish bias.
Reason for the trading strategy (technically):
CADJPY is approaching its major resistance at 85.25 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement, 50% Fibonacci retracement, horizontal swing high resistance) where we expect to see a reversal, causing price to push down to its support at 83.51 (38.2% Fibonacci retracement, 50% Fibonacci retracement, Horizontal pullback support).
Stochastic (89, 5, 3) is approaching its resistance at 97% where we expect to see a reversal. We have also identified a bearish divergence with price which contributes to our bearish bias.