CAD/JPY : The Currency Pair has recently corrected from its top.

In Daily time frame we can observe the upside move in the pair was a gap up and this move was sustained for more than a month.

Starting in May we have seen some correction in the currency pair which leads to the gap.
The currency pair is trading between the gap and we can assume that the pair can fill the gap in recent days.

Today the Pair from lower level gave a good upside move which was promising as we see the daily frame, For confirmation we usually go for short time frames as well, as we went through shorter time frames we saw a divergence which is indicating the move is strong.
The pair to move on higher range need to at least correct or move in range.

Majorly when we see a Divergence we always advise to sell the security. Based on only one analysis, if i'm suggesting you to sell then its pure gambling. We are not here to gamble, we are here to make money with limited risk and with proper analysis. If we gamble the probability of winning is 50-50 so it's better to gamble in a casino instead of in the share market.
We will only go short if the currency pair trades below 5 ema (at least 2 candles) and Macd crosses the signal line.
If any of these conditions with rsi is not full, fill will ignore short.

Advice : Sell only if above conditions are fulfilled.

Opportunity Ahead

Jul 16 2021

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