FOREX Chart Of The Day: CADJPY Range Breakout
Hi guys, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to go over CAD/JPY, this was featured on the Blueberry Jam, and the reason it was featured on the Blueberry Jam was that the price has broken out of this daily trading range.
We’re looking before to trade within this range; it didn’t work out in our favour in the end. However, the market was ranging between this 79.70 area, through here, all the way down into the 78.40’s. The market was trading within these two levels through here. And yesterday, we had a bullish daily close above that range, which confirms the opportunity for a breakout trade, here. If the market is going to break to the upside, where could we anticipate this market going? Well, I always look at the previous structure points. If we look left, here, we can see this previous structure high, around 81.65. If the market impulsed to the upside, I would expect a retest of this previous high.
How do we get on the back of this? We go into that four-hour timeframe, and we look for opportunities to trade the trend. We can see the four-hour trend is pushing to the upside within this range, and it has broken higher. What I’ll be looking for is a pullback continuation move. What I want to see is for the price to come back into these previous structure highs and this supporting area where we’ve broken out of the range, because the market will likely retest down here. I want to see if the market comes back, give us a retest of that and then look for a long opportunity.
There are one or two things you can wait for if the daily continues to impulse to the upside, then we’ll see a little bit of pullback on the daily. Then we’ll look for the long opportunity, or if the four-hour can pullback today or maybe, tomorrow, then we could look for the long opportunity, through here, on the 15-minute change of trend.
I’ll be looking if the four-hour starts pulling back, we’ll most likely see the 15-minute trend to the downside. Once it hits this zone, through here, I’ll be looking for changes in the cycle to buy the market back up.
Keep an eye on CAD/JPY. I wanted to feature this today to let you know that the price has broken out of that range.
Keep an eye on this. The price could rally up into 81.65, and I’ll catch you in the next video.
We hope our Forex Chart Of The Day analysis helps you in your trades. Practice trading the CAD/JPY pair with free $50,000 funding when you sign up for a free demo account at Blueberry Markets.