- April 20, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The CADJPY pair has made a parabolic rise since the March 08 low, which even exceeded our expectations based on our most recent trading idea:
Even though the dominant pattern remains bullish on a Fibonacci Channel, the strength has changed and is now more aggressive. The price action is on the 1D time-frame to better depict the medium-term volatility but the RSI below is on the 1W, in order to show you a key signal for when to book profit.
The suggestion is to buy as close to the 1D MA50 (blue trend-line) as possible as a pull-back is expected, similar to the March 17 – April 20 2021 fractal. We expect the top to be on the 3.5 Fibonacci extension at least but with such aggression can easily go higher. So the suggestion is to take profit and sell when the 1W RSI makes a Double Top in similar fashion as on May 31 2021, which marked the top of that bull run. Notice how the RSI now is at the same level as then.