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CADJPY Sells Off From New Resistance

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

Last Thursday I wrote about a potential CADJPY selling opportunity.

The rising wedge that extends from the March low at 81.63 suggested that buyers were tiring.

A few hours after I published Thursday’s post, CADJPY broke wedge support.

And after a bit of consolidation and a retest of former wedge support as new resistance at 83.90, CADJPY is off this week’s high by 70 pips.

I entered short here last week which I also announced in the Daily Price Action member’s area.

I also highlighted that 83.80/90 (new) resistance area in Sunday’s forecast.

Immediate resistance moving forward comes in at 83.50.

You can see how this region provided support for the pair between the 16th and 23rd of April.

As for support, I would expect to see buyers defend the April 11th low at 83.10.

I also have a good reason to believe the 82.65 region will attract a few buyers on the way down.

But my target for CADJPY remains the March lows near 81.70.

When trading a rising wedge such as this, I always use the pattern’s inception point as a final objective.

It doesn’t always play out the way I want, but it does work more often than not.

Keep in mind that we have a Bank of Canada (BoC) rate decision and statement on Wednesday at 10 am EST.

There is also a Bank of Japan (BoJ) monetary policy statement early in Thursday’s session.

The BoJ statements have been non-events for some time now.

However, that BoC rate decision and statement are likely to shake things up for the CADJPY quite a bit.

So if you aren’t already short from higher up, it would be prudent to hold off on any new positions for now given the upcoming events.

Want to see how we’re trading CADJPY? 

Click Here to join us and save 40% – Ends April 30th!

CADJPY rising wedge on the 4-hour time frame

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10 comments
Justin Bennett says

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POLA P says

OKAY AYT

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Adebayo saheed says

Thanks justin

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    Justin Bennett says

    My pleasure.

    Reply
Isaac says

Thanks

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    Justin Bennett says

    You’re welcome.

    Reply
Andre says

Hi Justin. If I join the whatsapp group is it the same thing as members area?

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    Justin Bennett says

    No, not even close. The member’s area is an entirely separate website with a full price action course, forums, and private messaging feature. You can learn more here:

    https://swingtrading.dailypriceaction.com/lifetime-membership

    I’m also active in the member’s area every day.

    The WhatsApp groups are simply broadcasts of new blog posts. I don’t interact with others on WhatsApp.

    Reply
Praise says

Well noted. Sir. Thanks a lot.

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    Justin Bennett says

    You’re welcome.

    Reply
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