FX.co ★ CADJPY broke out of descending trendline resistance! Potential bullish momentum | 1st Oct 2021

Price broke out of the descending trendline resistance (now support) signifying a bullish momentum. Price is approaching the area of 1st support in line with 23.6% Fibonacci retracement, 127.2 % Fibonacci Projection and graphical overlap, we can expect price to bounce from the 1st support area to 1st Resistance in line with 61.8% Fibonacci Projection. Our bullish bias is further supported by the Ichimoku cloud where price holding above it showing a support level and the stochastic indicator where the %D line is approaching the support level awaiting for a bounce.

Trading Recommendation

Entry: 87.312

Reason for Entry:

23.6% Fibonacci retracement, 127.2 % Fibonacci Projection and graphical support,

Take Profit: 88.407

Reason for Take Profit:

61.8% Fibonacci Projection, previous swing high

Stop Loss: 86.877

Reason for Stop Loss:

38.2% Fibonacci retracement ,200% Fibonacci Projection