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CADJPY Double Top Nearly Confirmed: Target Is 83.20

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After rallying more than 1,400 pips since the November 9th U.S. elections, the CADJPY is pulling back. The price action since the 2016 high at 88.91 appears to have carved out a double top with a 270 pip range. This area is significant as it also capped the advance in April of last year.

However, it’s going to take a daily close below the 85.95 neckline to confirm the structure. If sellers manage a session close (5 pm EST) below this level, the area will serve as new resistance moving forward.

The measured objective for the pattern comes in at 83.20, which also acted as support in late November of last year.

At the moment, the CADJPY is about 150 pips away from the mean (per the 10 and 20 EMAs). As such, I’ll need to wait for a retest of the 86.00 area as new resistance to secure a favorable risk to reward ratio.

There’s always a chance the pair will take off without me, but I would (always) rather miss an opportunity than chase a fast moving market.

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CADJPY double top

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3 comments
Alex says

Hello Justin. Thank you for sharing with us. You’ve mention EMAs. I’m wondering if the averages are truly helpful.

Best Regards
Alex

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anbarasu says

your cad/jpy setup window understood thanks

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