CADJPY’s bears have finally initiated a correction that is apparently a sharp one according to my July 5 analysis. What’s next?

As a result, my July 5’ short trade has exited in profit after holding for 6 days and 1 hour:

https://www.finlogix.com/analysis/20240705/cadjpy-intraday-analysis-and-trading-plan-for-july-5-2024

A new overall record of 1-0 win-loss record.

There are no high impact economic reports both in Canada and Japan this trading week.

Re-assessing CADJPY’s high timeframe candles:

Yearly Candle: Still a Green Body since last check but with a Longer Head Wick

Monthly Candle: Last check is a Semi Green Shaven Bottom current is a Red Long-Legged Spinning Top

Weekly Candle: Previous close is a Green Long Upper Shadow current is a Red Long-Legged Spinning Top

Daily Candle: Previous close is a Red Body with a Longer Tail Wick current is a Green Long Lower Shadow

In today’s analysis, I’m referencing a new set of retracement points after a sharp downturn seen this week.

That is the July 10-12  swing high to swing low move. A very sharp drop indeed!

On the 4H chart above, I lay out a wide 4H bearish void after topping out on the 118.85 level last Wednesday.

However, CADJPY’s 4H 200-SMA came to step in, temporarily halting the further price bleeding.

On the contrary, the weekly candle is already showing signs of ranging.

Assuming that this local top is as it is to be, thefore there will be another leg down or sideway moves soon.

In today’s trade plan, I’m still going to short CADJPY but I need confirmation for a mini rally towards the bearish void above.

Entering through the mentioned retracement points’ premium 61.80% fib.

Will set the same stop loss at the 119 level and a take profit aimed at the bearish 1.618 fib extension.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

Waiting for the rebalancing rally first and I’m willing to take the risk.

All trade ideas I share are my own views and for my own trades only.