FOREX Chart Of The Day: CADJPY Short Trade Idea
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
In this video, we’re going to take a look at CAD/JPY. We’re looking for the market to continue to move lower, and we’re going to have a little look at how we could potentially look for that trading opportunity.
Looking at the higher time frame, look at this daily chart, we can see that price has been pushing to the downside quite aggressively. We’ve broken through these lows just through here recently. The market hasn’t looked back. It’s just continued to push lower, and kind of looking at the support and resistance levels at the moment.
We can see the potential for the market to head towards this 78 area. The market has found numerous resistance and support points here in the past and even most recently towards the end of July. So, I’m expecting the market to come and potentially retest this zone and level just through here.
Look at the daily chart as well and the closes. The recent close, we’ve had a nice bearish close through there. Today we’ve kind of broken through those lows and are just sitting around the previous closing prices. So, I’m looking for this to kind of continue to break down.
Get into that four-hour time frame. Price is sort of continuing to make lower lows and lower highs. We’ve recently tested these swing lows here, and prices have pushed down. But again, we’re starting to get a little bit of a push up through here at the minute.
What I want to see is that 15 minute kind of break cycle and move to the downside. So, if we go to a 15-minute time frame, we can see that price is currently making higher highs and higher lows. What I want to see out of this, if I’m going to look for that short position, is a break of these lows currently around about 78.55.
If the price was to do that, let me get that close below, I’ll be looking for short opportunities in here down to that 78 areas. Now, what we may see because the four-hour is kind of pulling back at the moment is another retest of these highs just through here.
So, if I place a rectangle on here so around about that 78, 79 area, the price could rally back into that zone, retest, and then continue to make its way to the downside. Depending on if this high holds through here around about 79.10. If that high there holds, I’m expecting further downside on CAD/JPY.
So, look for those short opportunities. I like this market to push towards that 78 level, really close to it now. So, expecting that to be tested.
I hope you’ve enjoyed the content this week so far. If you did, please like and subscribe to the Youtube channel for more trading content. I’ll speak to you soon.
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