FX.co ★ CADJPY testing trendline, potential for a reversal!

Price is approaching our descending trendline resistance and 1st resistance, in line with our horizontal swing high resistance and 50% Fibonacci extension. We could potentially see a reversal at this level and a further push down towards our 1st support level, in line with our 78.6% Fibonacci extension, 61.8% Fibonacci retracement and horizontal swing low support. RSI is also approaching the resistance level at 57.00% where it has reacted from previously, showing bearish momentum in line with our analysis.

Trading Recommendation

Entry: 81.502

Reason for Entry:

50% Fibonacci extension and horizontal swing high resistance

Take Profit: 81.246

Reason for Take Profit:

78.6% Fibonacci extension, 61.8% Fibonacci retracement and horizontal swing low support

Stop Loss: 81.682

Reason for Stop Loss:

78.6% Fibonacci extension and horizontal swing high resistance