CADJPY is at 109.25, which is the resistance area and a strong foothold of the resistance market. On H4, market is in a bullish trend, forming higher highs and higher lows. On the other hand, the higher timeframes have a more logical bearish trend with formation of lower lows and lower highs. From this standpoint, we will be looking to short the market from the resitance level and continue the corrective move as the market starts the drop.

The ascending trendline is still on the verge of breaking out for sells. On the other hand, there is a resistance trendline which is being tapped and the market has the potential to reject this trendline. 

The retracement area is at 78.6% which is in confluence with the resistance level.

The EMA 50 is bullish. We can extend our profit range towards the EMA 50 retest. 

RSI is at 66. We need to wait for the RSI to head towards the over bought region in order to form some kind of bearish divergence and then start to move down. 

CADJPY at resistance

Oct 20 2022

Stop Loss -0.42%

Holding time 3hr

109.034

Entry price

109.489

Stop loss price