CADJPY Analysis: Navigating Market Trends and Key Levels✨ Welcome to my channel. Here, we analyze a new crypto project or Forex pair every day.
📅 Let's dive into today's analysis, focusing on the CADJPY pair in the Forex market.
🗂 About the Pair: The CADJPY is a currency pair that represents the exchange rate between the Canadian Dollar (CAD) and the Japanese Yen (JPY). This pair is influenced by factors such as oil prices, which affect the Canadian economy, and Japan's status as a major importer of commodities. As such, the CADJPY pair can exhibit significant volatility and is of interest to traders looking for opportunities in the Forex market.
📊 Weekly Timeframe Analysis
In this timeframe, CADJPY has experienced notable movements. Recently, it saw a sharp decline, indicating a significant correction from previous highs. The pair reached a critical supply zone around 117.682 and has since entered a downward trend, currently testing a support level near 105.722.
Support Levels: The key support levels observed are at 105.722 and 101.072.
Resistance Levels: The resistance levels to watch are around 110.109 and 117.682.
📈 If CADJPY stabilizes above 110.109, we could see a bullish momentum potentially pushing the price towards the next resistance at 117.682. Confirmation of a new upward trend will depend on candle stability above this level.
📉 Conversely, if CADJPY falls below 105.722, it may continue its bearish trend, with the next critical support level around 101.072.
Volume analysis is crucial in this scenario. A strong trend should be accompanied by corresponding volume, with particular attention to any divergence that may indicate a potential reversal.
📊 Daily Timeframe Analysis
On the daily chart, CADJPY has exhibited significant bearish momentum. After a period of ranging around the 108.874 level, the price dropped sharply and is currently finding support around 105.714.
Support Level: The support level to monitor is 105.714.
Resistance Levels: Resistance levels are marked at 108.874 and 112.089.
🧲 Given the current setup, a stabilization below 105.714 could signal further bearish continuation. On the other hand, if the price manages to move above 108.874, it could indicate the start of a bullish reversal, targeting higher resistance levels.
📊 4-Hour Timeframe Analysis
In the 4-hour timeframe, CADJPY has encountered resistance at 108.874 and has shown a pullback. The pair recently tested the support at 105.714, aligning with the bearish trend observed on the higher timeframes.
Short Position Key Levels: For short positions, critical levels are 108.874 and 112.089, where price reactions could provide better entry points.
Long Position Key Levels: For long positions, the critical support levels to watch are 105.714 and 101.072.
Volume analysis indicates decreasing momentum, suggesting a potential exhaustion of the downward movement. Monitoring volume and price action will be crucial for identifying potential reversals.
📊 RSI Oscillator
The RSI is currently ranging between 33.97 on the weekly timeframe and 13.64 on the daily timeframe. Breaking these levels could provide confirmation for opening positions. However, it is essential to use these levels in conjunction with candle patterns and volume analysis to find the best entry and exit points.
📉 Given the current bearish signals in the daily and 4-hour timeframes, alongside the downward trend in the weekly timeframe, I am inclined to consider short positions. However, this is based on my trading strategy. Each trader should base their decisions on their strategies and risk management plans.
⚠️ Please note that this is not financial advice. I'm simply introducing this analysis to you, and remember always to do your own research.
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