The Canadian Dollar Japanese Yen

Good morning Dynamic Traders,

Today I am looking at a possible reversal situation with the CADJPY.

On the higher daily timeframe we are standing at a possible double top formation with some divergence on the MACD indicator.

If you now go down to the lower timeframe chart below of the four hour timescale, you will see that the double top is in evidence here with also an overbought RSI indicator.

At the moment I am looking for an intraday trade with entry off the lower timeframe as at present we do have a fibonacci cluster on the hourly.

The longer term trend is down although the shorter is up, so I am awaiting confirmation to take a trade to the short side but at present have not seen this, but there is a spinning top candle that did pierce resistance on the last complete candle, which also went through a good figure.

If price does decide to head north then your filters should be employed for the continuation.

Once again be patient for your entry and as always please do your own analysis.
















Charts courtesy of TradeStation.

Good luck with your trading.

Clayton Farnworth.