CAD/JPY at Key Support Zone: High-Probability Trading Scenario

he CAD/JPY is approaching a critical support zone (107.50 - 108.00) on the daily chart, providing multiple trading opportunities based on key technical setups. Here's a breakdown of potential scenario

Scenario 1: Buy at Key Support (107.2 - 105.7)

Rationale:

• Strong confluence of support from prior lows (point B), ascending trendline, and Fibonacci retracements.
  
• TDI Indicator is near oversold levels with bullish divergence, signaling a potential reversal.
  
• High probability of a bounce from this support zone.
  

Trade Parameters:

• Buy Zone: 107.2
  
• Stop Loss: 105.7
  
• Take Profit Targets:
  
• Target 1: 114.6 (intermediate resistance)
  
• Target 2: 118.6
  
• Risk-Reward Ratio: 1:4
  

The strategy offers a great probability of success, supported by strong technical confluences and favorable risk-reward dynamics.

Monitor price action and volume closely ON LOWER TIMEFRAMES to validate entries.