- February 3, 2022
- Posted by: Tradingshot Articles
- Category: Forex
CADJPY has been trading on a Fibonacci Channel ever since the March 2020 COVID fueled market bottom. The bullish trend that followed has been gradually making Higher Highs on the next Fibonacci extension. Currently the last two Highs have been on the Fib 2.0 extension.
The Support Zone of this pattern is constructed by the 1D MA200 (orange trend-line) and the 1W MA50 (red trend-line). Most recently the pair hit that zone on December 20 and rebounded immediately. The sequence is very similar in terms of CCI with the the price action from May to September 2021. If it continues to be replicated that way, we should be expecting a strong rally soon. Follow a structured target set: first the 1.5 Fibonacci extension and if that breaks, then the 2.0.