Analysis
-CADJPY looking bearish after showing signs of reversal. Buyers pushed price up into and past resistance before the previous day's candle close. The next day, sellers stepped in and pushed price all the way down past yesterday's daily candle open.
-The price action resulted in a bearish engulfing setup AT RESISTANCE which is a bearish sign.
-On the 1H time frame, price just broke a bullish trend to the downside and has retraced some pips, possible retesting breakout.
-There is also bearish RSI divergence on the 1H time frame which further eludes to price possibly reversing to the downside.
-The reward/risk seems tight for the setup (given the distance between daily S/R) so I'm waiting for a strong pullback before entering short
Entry, Stops and Targets
-Short Entry: 83.79 (I entered on a pullback after price broke out)
-Stop Loss: 84.275 (Set stop above the high of the daily reversal candle)
-Take Profit: 82.82 (Set targets at a minimum of 1.8 times your stop depending on entry)
= 2R
*Manage your EMOTIONS, manage your RISK, follow your STRATEGY*
-CADJPY looking bearish after showing signs of reversal. Buyers pushed price up into and past resistance before the previous day's candle close. The next day, sellers stepped in and pushed price all the way down past yesterday's daily candle open.
-The price action resulted in a bearish engulfing setup AT RESISTANCE which is a bearish sign.
-On the 1H time frame, price just broke a bullish trend to the downside and has retraced some pips, possible retesting breakout.
-There is also bearish RSI divergence on the 1H time frame which further eludes to price possibly reversing to the downside.
-The reward/risk seems tight for the setup (given the distance between daily S/R) so I'm waiting for a strong pullback before entering short
Entry, Stops and Targets
-Short Entry: 83.79 (I entered on a pullback after price broke out)
-Stop Loss: 84.275 (Set stop above the high of the daily reversal candle)
-Take Profit: 82.82 (Set targets at a minimum of 1.8 times your stop depending on entry)
= 2R
*Manage your EMOTIONS, manage your RISK, follow your STRATEGY*