CAD/JPY October Setup: Bearish Divergence Confirmed with TDI

CAD/JPY October Market Structure and Trading Analysis

In the month of October, the CAD/JPY pair is exhibiting a classic open high-low-close structure, indicating a potential sell setup. This bearish outlook has now been confirmed with a TDI (Traders Dynamic Index) cross, signaling the appropriate time to consider sell entries.

Key Technical Highlights:

1. Bearish Divergence: A significant bearish divergence has been present since July 19, 2024, continuing to the current market price. This divergence suggests weakening bullish momentum and a likely shift towards a downward trend.

2. Open High Structure on Daily Timeframe: The daily chart for October reflects an open high structure, which is a strong indication of a bearish trend for the remainder of the month.

3. Overbought Conditions: Following a bullish breakout that began on October 1, 2024, the market had reached overbought levels, creating a favorable scenario for a reversal.

4. Confirmed Bearish TDI Cross: As of October 10, a bearish TDI cross has occurred, confirming the presence of sellers in the market. This cross is a key technical indicator, signaling that sell positions are now supported by market conditions.

**Take Profit Targets:**
- **Take Profit 1:** 107.250
- **Take Profit 2:** 106.500

Trading Recommendations:
Even though we have the confirmation from the TDI cross, it is essential to remain cautious and ensure that valid signals continue to align with the overall market conditions. Always apply risk management strategies to safeguard your capital while trading.

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