FOREX Chart Of The Day: CADJPY Trend Trade
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 as it features on my currency heat map, and you can see here: it says CAD/JPY bullish. So, we’re looking for those opportunities. What I really want to wait for is a nice bullish close, and looking behind me, you can see the price is currently bullish for the day. Hopefully, it can look to close like this when we start to look for decent trading opportunities.
So, what I like to do is pair currency strengths and weaknesses together, then match them up with their daily closes in order to look for potential positions going into the next day.
We can see here on CAD/JPY that there’s a potential, here, for the trend to move to the upside. We’ve got the nice weekly area of resistance, just up here and we’ve got the market technically forming higher highs and higher lows. The market is currently retesting this structure point, through here, which is previous structure highs, as well as these structure highs, here. So, now we’re starting to get that.
What I’m looking for is that four-hour change in simplicity. So, the four-hour time frame is going to give me an idea of the mid-term trend because what I’m trying to do is trade these impulses. So, let’s say – the impulse, here on the trend to the upside – I’m trying to catch these impulses, through here, what I want to see is that trend in my favor in order to trade this back to the upside, because what we have, here, is the market making lower highs and lower lows. We’ve rallied up, we’ve dropped down, and spiked back up, through here. Now, the market is breaking above these highs. So, what I want to see is two closes above this line, here, and if I get two closes above that line, that suggests that the trend has changed in the four-hour time frame.
The next job for me to do is look to buy the market on a potential pullback or on an end-of-day position. Now, what I like to do is when the market does rally, pullback. I want to be in here, on my lower time frames, looking to buy on any kind of changes in simplicity, down in here. So you can see, here, the market comes back to the lows then breaks to the downside. I’m trying to do this, but in the direction of the overall daily trend, this is just the pullback phase on the daily time frame.
If I go to the daily, you can see it is literally just that move, through here. So, we’re looking for some upside here, while waiting for the daily bullish close. If we do get that, we’ve got a nice move potentially up into these weekly highs. That’s around 130 potential pips to catch here.
So keep your eye on CAD/JPY, that could be the one to buy. Let’s wait for this four-hour change in trend to catch that nice impulse move and look for some profits there.
Thanks for watching. I’ll speak to you soon.
The CAD/JPY has good potential for the week to come. If you’re still on the fence about buying CAD/JPY, you can give it a try at no-risk with a demo trading account. Open one with Blueberry Markets by clicking here.
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