Moving in an uptrend, CAD/JPY formed a double top near the psychological resistance level of 92.00. At the same time, this level corresponds to the 23.6% resistance level of the Fibonacci applied to a breakout point of
the descending channel.
While the pair was trying to brake below 38.2% support (R1 – 91.38), the price
retraced back, perhaps to retest this level, acting as resistance this time. As
it is likely to be rejected today, consider selling CAD/JPY at the current level
targeting the areas around S1 (90.87) or S2 (90.36) . The target at S2 seems to be more
reasonable as previously it acted as a strong resistance. To stay safe, stop loss should be placed just above R2. However, tighter stop loss could
also work out.
Support: 90.87, 90.36
Resistance: 91.38, 92.00
The material has been provided by InstaForex Company – www.instaforex.com