CADJPY Forecast 07-20-12 – Potential Trade

Quick update on the Canadian Dollar versus the Japanese Yen and potential trade setup.

CADJPY is breaking out to the downside from a wedge pattern which overrules a pullback signal.

ACTION: Look to go short as close to 77.50 as possible (or use 5-15-30 minute overbought rallies to sell into), use 77.98 stop loss, ADD to short at confirming breakout at 77.20 (if reached), move stop to break even at 76.75.

At Target 1= 76.41, exit 1/3 and move stop to 76.75, at Target 2 = 75.65, exit another 1/3 and move stop to 76.41, and trail stop to 74.30, limit out exit.

REVERSE to long if 78.30 is breached to the upside, move stop to break even at 78.70, Target 1 = 79.08 and move stop to 78.70, Target 2 = 79.50 exit all or trail to 89.98, limit out. See CADJPY daily candlestick chart below with analysis.

CADJPY daily chart with analysis

Cheers!

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