CAD/JPY has been in consolidation in the daily chart. The chart produced a bullish daily candle last Friday. The H1 chart shows that the price produced two consecutive bearish candles to start its trading day. It then had a bullish correction and made a breakout at the swing low. If the price goes back to the breakout level and produces a bearish reversal candle, the sellers may find an opportunity to go short in the pair.
Chart 1 CAD/JPY H1 Chart
The chart shows that the price had a rejection at 81.375 and produced two consecutive bearish candles. Upon making a bullish correction, it made a strong bearish move and made a breakout at the level of 81.180. The pair is trading below the level as of writing. If the price goes back to the breakout level and produces a bearish reversal candle, the sellers may go short below the level of 81.050.
Trade Summary:
Entry: Sell below 81.050
Stop Loss: Above 81.180
Take Profit 1: 80.850
Take Profit 2: 80.800
Take Profit 3: 80.700