CAD/JPY: Actually, the pair is on its way to the upper level of the navigation started a few sessions ago. The current resistance and support of the channel are 81.78 and 78.66.
For the last few weeks, the pair is navigating and doesn’t have any specific trend. A vain breach occurred during the session of 08-11-2010 and today’s session is likely to be closed above it in an uptrend situation. That vain breach disclosed an opportunity to go “Long”.
For most of the “Long” market orders, the identification of an increasing configuration on one-hour graph should be a prior step.
Once the resistance of 1.0057 will be crossed upward, the required configuration should appear. There are several possible orders, and following is the one made by our analysts:
– “Limit” order on “Long” position 10 pips above the mentioned hourly resistance, meaning: 1.0067.
– “Stop Loss” on the last low appeared, which is: 1.0010.
– 1st degree for “Take Profit” on the following resistance: 1.0086
Actually, the pair is on its way to the upper level of the navigation started a few sessions ago. The current resistance and support of the channel are 81.78 and 78.66.
The pair reached in the last session the level of 81.4 and is very likely to reach the resistance today. Its behavior when the resistance will be reached will determine the future trend as well the future potential trade:
– A vain breach of the resistance could result in a new downtrend, allowing the opportunity to go “Short”.
– The resistance is crossed and broken. In such a case, an opportunity to go “Long” should be created after the occurrence of a technical correction and the identification of an increasing configuration on One-Hour graph.
Have a profitable Day!