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CADJPY Carves Sell Signal for Next Week

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Remember the 84.50 resistance area on CADJPY?

I pointed out this area on the 25th of February.

The reason I continue to like the 84.50 area is that it’s the former ascending channel support that extends from the 2016 low.

You may recall how this former channel support triggered the 600-pip selloff last December.

As we know, old support becomes new resistance.

That means this weeks retest of 84.50 was likely to encounter selling pressure.

Here’s the weekly chart I posted this past Monday:

CADJPY ascending channel on weekly time frame

CADJPY did manage a high of 85.23 on Friday, but it turned out to be the last gasp from bulls.

I sold the pair at 85.06 which I announced in the member’s area.

As for key support on the way down, there is an area at 83.80 that could attract a few buyers.

However, if sellers can follow through on this bearish rejection candle, there isn’t much in the way of support until the 82.00 area.

Below that we have the lows from April 2017 and March 2018 at 80.55.

Given how choppy CADJPY has been this year, I wouldn’t be surprised to see another retest of the 84.50/60 resistance area next week.

But as long as this new resistance at 84.50/60 is intact on a daily closing basis, I will stay bearish CADJPY.

Enjoy your weekend everyone.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Click Here to get access to the same charts I use.

CADJPY bearish rejection candle at resistance

Leave a Comment:

23 comments
DESTINY ISIBOR says

Just finished analyzing CADJPY about 20 minutes ago. Trust me Justin, You’re one of among the best 100 FOREX coaches out there. I’ve been running through your lessons within the past 5 days. Deleted 20 indicators I had. My entire world has been totally revolutionized. Your Lessons are are as insightful as there are impeccable. Will be registering for the members community ASAP. More grace

Reply
    Justin Bennett says

    Thanks for the kind words. Simple price action and loads of patience make all the difference in the world.

    We look forward to having you as a member.

    Reply
    Linda says

    I couldn’t have said it better.back when he used to do webinars I made $286 for the first time in my learning period, at first encounter with his lessons.

    Big up Justin

    Reply
      Linda says

      And it wasn’t a forecast, just a simple demonstration. When I applied it, i was amazed at the results

      Reply
      Justin Bennett says

      That’s great, Linda. Thanks for sharing.

      Reply
Moses Desmond Darko says

Great

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joe says

why do you have sold the pair at 85.06?

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    Justin Bennett says

    Hi Joe, I only share that information with members.

    Reply
      Marek says

      sell cadjpy is still open?

      Reply
        Justin Bennett says

        Hi Marek, I only share my positions with members.

        Reply
          Marek says

          Mr. Bennett, thank you for fast reply. I fully understand you, everybody must pay bills for electricity. But could you show your trade set ups for example in Janurary 2019?

          Reply
          Justin Bennett says

          I’m not sure what you mean.

          Reply
          Marek says

          Mr. Bennett, I´m not native English speaker. I wanted to ask: did you announce your personal trade setups in membership zone? Enter, SL, TP? Do you use waiting orders? What are the resultsof your trade? Is your service suitable for people in GMT +1 time zone?
          Your free analyses are perfect though, but I´m not sure how to use them. Wait, sell, buy? That´s why I´m asking. Thank you for patience.

          Reply
          Justin Bennett says

          Yes, I told members where I entered CADJPY including my stop loss and profit target. However, I want to be clear that I do NOT run a signal service.

          If you have any other questions, feel free to email me.

          Reply
Dee says

Thanks alot my guy..
Very helpful

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    Justin Bennett says

    You’re welcome.

    Reply
Linda says

Just saw this now, because I am new to this, I have never traded CAD/JPY but I took a look at the chart for curiosity’s sake.

I noticed that the support got tested three times, it’s an uptrend(been for +2.5 months), saw a pullback (not sure though) and this gave me somewhat confidence that the pair may ascend to the neighborhood of 86.889?

Just putting my little knowledge to test

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    Pierre Mifsud says

    From my 10 years trading experience I can tell you beware of CAD as it is very volatile meaning that it does not follow always a particular trend…

    When it tried to break the resistance of 84.68 and reached the 85.30 handle after a short spell buyers could not keep up the uptrend going and were exhausted and rolled down 120 pips to 84.10. But this could also mean more highs next week as it might reattempt to pass this resistance once the resistance was already broken

    However up to now due to CAD extreme volatility it appears to be in a downtrend but everything can change suddenly with the CAD. If you take the 1 hour chart it shows a potential downward move till 82.85-83.04 but if you use the daily chart it could potentially also roll down to at least 80.78- 80.28 margin. Should the support of 80.28 be broken then the 77.00 lows of 2 nd January 2019 will be re-exposed. This means that if a double bottom will form then we can see CADJPY to rally back to the 85 handle…..

    But CAD is indeed very volatile so you would also need to study other pairs before you trade it including the US OIL itself. It appears next week from the 1 hour chart that the US OIL from a current 55. 75 may reach even 57.75 and hence there is a big possibility of more CAD strengthening…. for the first part of the week like Monday and Tuesday….Hope this will help

    Reply
      Pierre Mifsud says

      On the weekly time frame the 72.30 handle of the US OIL CANNOT be excluded…. that means that further CAD strength may still be brewing ahead of us and makes me also believe that USDCAD may also reach the 1.2835 handle on the daily in a few weeks time…. But as Justin rightly says it……we must allow the market to make its first step and be patient BEFORE we act properly

      Reply
Massy Bondo says

I appreciate your trading analysis am looking forward to be your student

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    Justin Bennett says

    Cheers, Massy. We look forward to having you.

    Reply
ADEYANJU IBRAHIM ALASI says

Please, what’s the importance of BEARISH rejection candle? l am learning from your posts a lot .Thanks and have a nice week my mentor.

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    Justin Bennett says

    It illustrates the selling pressure in the area.

    Reply
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