Short term trading idea: CAD/JPY H4 Long

Our expectations: The short-term trend is sustained after a successful price test in a support zone formed by a major diagonal, 38.2% Fibonacci correction, Short-term horizon and 200SMA. I expect first test at the levels of about 23.6% Fibonacci correction, and in case of a break up, test at the peak of 22 May. Price Action - Pin Bar with a long lower shadow of levels of support, with the price clearly showing the superiority of the bulls - likely growth. DeMarker 8 also supports DeMarker 8, which turns and points upward from an over-sales area - a likely start of a new upswing. Fundamentally, CAD is backed by strong oil and keeps pressure from the JPY, which, in turn, receives support from capital injection into Safe Haven tools. In short, this means that at the moment the stock markets calm down, we will see a strong growth in the pair.

SL: 84,812

Alternative Scenario: If the price goes below the support zone and stays there in several consecutive bars, the positive scenario will break and more likely to see a decrease in the cost of the Canadian.

Read more:

• CAD/JPY – Short on trend
• Morgan Stanley Short on CAD/JPY with SL: 85.15 and Target: 78.00
• CAD/CHF It is possible to restore the downward movement
• CAD / JPY Good levels for long positions
• USD / CAD reached dynamic Fibonacci levels