The chart below of the CADJPY pair shows the pair reacted lower from a bearish supply zone (Gray) and also reacted lower from a clear visible blue resistance level/previous support. A bearish divergence pattern (Red) also formed in the same zone/level signalling for a possible continuation lower. Price has since moved lower from supply zone signalling a bearish change of character (Black CHoCH). If looking to trade CADJPY, traders should be patient and wait for price to make a small push higher. Wait for price to at least enter the Daily bearish order block (Purple). When price enters the order block traders should switch to lower time frames, like the 1 Hour or 15 Minute chart, and look for price to start showing that it wants to shift lower then aim for the target levels below (Green). Only time will tell what CADJPY will do but for the meantime we expect more downside as long as price remains below the November 20 2024 divergence high.
CADJPY Daily Chart December 29 2024
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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