Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

CAD/JPY: sell target – 84.50

By: Dmitriy Chernovolov

  • CAD/JPY reversed from resistance zone
  • Next sell target – 84.50

CAD/JPY recently reversed down sharply from the resistance zone lying between the resistance level 87.00 (top of the previous intermediate (A)-wave from the end of January), upper daily Bollinger Band and the 38.2% Fibonacci retracement of the previous weekly downward impulse from May of 2015. The downward reversal from this resistance zone stopped the minor impulse wave (iii) from the start of March.

With the clear bearish divergence visible on the daily Stochastic indicator - CAD/JPY can be expected to fall further from the current levels toward the next sell target at the support level 84.50. Strong resistance remains at 87.00.

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