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CADJPY Shorts Favored Below 84.50

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CADJPY is once again testing 83.80 resistance.

The area played a critical role as support between August and December of last year.

The Canadian dollar cross sold off from 83.80 earlier this month. However, buyers weren’t ready to fold.

You can see how this area is once again attracting sellers today’s session.

What’s different this time versus the retest on the 4th and 5th is today’s pending bearish engulfing range.

If today’s session does engulf yesterday’s, it could be a sign that CADJPY is ready to roll over.

The alternative to that scenario is a push higher toward former channel support near 84.50.

I mentioned this pattern on December 18th.

When you add the January 3rd flash crash, that breakdown was good for nearly 700 pips.

As long as CADJPY remains below 84.50 on a daily closing basis, the pair is vulnerable. That’s especially true if today closes as a bearish engulfing range.

The “daily closing basis” refers to the New York 5 pm EST close. These charts are required for trading price action.

Go here to get instant access to the same Forex charts I use.

Key support comes in at 81.90, 80.55 and 78.70. Keep in mind that we could see a few bids crop up near 82.90 as well.

On the flip side, a move above 83.80 resistance would have us watching for a short opportunity near 84.50.

Either way, I favor CADJPY shorts while below 84.50.

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CADJPY new resistance area on the daily time frame

Leave a Comment:

19 comments
Dee says

Thank you

Reply
    Justin Bennett says

    You’re welcome.

    Reply
      Longof says

      Hi Justin. I haven`t decided still because i have a question. Need a better explanation about the broker that you recomended to me, “Blueberry markets”. I don`t Know that, conditions, spreads, deposits, and more. Can you give me more information?
      Thanks.

      Reply
        Justin Bennett says

        You should reach out to them directly. They will be able to answer any questions you have about their services.

        Reply
Praise says

Always on time sir…

Reply
Longof says

Hi Justin. I haven`t decided still because i have a question. Need a better explanation about the broker that you recomended to me, “Blueberry markets”. I don`t Know that, conditions, spreads, deposits, and more. Can you give me more information?
Thanks.

Reply
OGBORO preciouslife says

Nice one

Reply
Esi says

thank you .

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Lekhema says

Thank you very much Justin, you really helped me with these set ups you post I really improved, you are the best man may God bless you!!!

Reply
    Justin Bennett says

    You’re welcome. That’s great to hear!

    Reply
Liz says

There also appears to be a double top at that level?

Reply
    Justin Bennett says

    Maybe, but I prefer to see double tops at extreme highs and take much more than a week or two to play out.

    Reply
Ballack says

Hi, how do you kow 81.90 is support area brother? Thanks.

Reply
    Justin Bennett says

    Look at the closing and opening prices throughout January.

    Reply
Adebayo saheed says

your Analysis always on point….bravo

Reply
    Justin Bennett says

    Thanks, Adebayo. Let me know if you have questions.

    Reply
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