CAD/JPY Bullish Breakout: Potential Buy Opportunities
The CAD/JPY 4-hour chart shows a strong bullish movement after completing a Bullish Gartley harmonic pattern. The support zone around point D, acted as a significant reversal point. Now, the price has broken through a descending resistance line, indicating a potential continuation of the bullish trend in the short term. Positive momentum and a favorable technical setup are present, supported by the TDIGMA oscillator moving into overbought territory, confirming strong upward momentum.
1. Buy on Retest of the Broken Trendline
After breaking the descending trendline, the price may retest this line as support, presenting a buying opportunity on a pullback. This strategy targets the continuation of the bullish movement.
Entry: Buy between 108.20 - 108.40 on the retest of the broken trendline.
Stop Loss: 108.105 (below the recent consolidation zone).
Risk-Reward Ratio: 1:1
Rationale: The strong uptrend and breakout from resistance make this pullback buy strategy highly probable.
2. Buy on Continuation After Consolidation
If the price continues to rise without retesting the broken trendline, wait for a consolidation phase and look for a buying opportunity once the upward trend pauses, aiming for a continuation of the bullish move.
Entry: Buy around 109.505 after a consolidation phase.
Stop Loss: 108.105 (below the consolidation zone).
Risk-Reward Ratio: 1:1
Rationale: A continuation buy strategy can be effective, but it’s crucial to watch for clear signs of a pause in the movement before entering.
Final Notes
CAD/JPY is showing clear bullish signals after breaking a descending trendline. The strategy to buy on the retest of the broken line offers a high probability of success. Alternatively, buying after a consolidation phase provides another viable strategy with a solid risk-reward ratio. Monitoring price action and confirmation signals on lower timeframes is essential for adjusting entries in real-time.
1. Buy on Retest of the Broken Trendline
After breaking the descending trendline, the price may retest this line as support, presenting a buying opportunity on a pullback. This strategy targets the continuation of the bullish movement.
Entry: Buy between 108.20 - 108.40 on the retest of the broken trendline.
Stop Loss: 108.105 (below the recent consolidation zone).
Risk-Reward Ratio: 1:1
Rationale: The strong uptrend and breakout from resistance make this pullback buy strategy highly probable.
2. Buy on Continuation After Consolidation
If the price continues to rise without retesting the broken trendline, wait for a consolidation phase and look for a buying opportunity once the upward trend pauses, aiming for a continuation of the bullish move.
Entry: Buy around 109.505 after a consolidation phase.
Stop Loss: 108.105 (below the consolidation zone).
Risk-Reward Ratio: 1:1
Rationale: A continuation buy strategy can be effective, but it’s crucial to watch for clear signs of a pause in the movement before entering.
Final Notes
CAD/JPY is showing clear bullish signals after breaking a descending trendline. The strategy to buy on the retest of the broken line offers a high probability of success. Alternatively, buying after a consolidation phase provides another viable strategy with a solid risk-reward ratio. Monitoring price action and confirmation signals on lower timeframes is essential for adjusting entries in real-time.
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.