Our free forex signals service trade today is a buy order on the CAD/JPY. The cross will go upside if it finds rejection around the support level.
The CAD/JPY pair drops, but this could only be a temporary correction. After its amazing rally, a temporary retreat was expected. Instead, however, the price action developed a falling wedge pattern. Validating this pattern could bring new long opportunities. Technically, the currency pair plunged as the Japanese Yen futures rebounded.
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Fundamentally, the Japanese Prelim Industrial Production rose by 0.1%, less than the 0.5% expected, while the Housing Starts surged by 6.3%, beating the 1.3% estimates. Therefore, in the short term, the bias is bearish. That’s why we need strong confirmation before taking action.
Canadian GDP 0.2% growth expected
Today, the Canadian GDP could be decisive. The volatility could be high around this high-impact event. The economic indicator is expected to register a 0.2% growth in January. Tomorrow, the Japanese and Canadian manufacturing data could bring more action.
As you can see on the 4-hour chart, the price developed a falling wedge pattern. The downside line and the pivot point of 96.72 are seen as support. A valid upside breakout from this pattern could bring new opportunities. On the other hand, a valid breakdown below the mentioned downside obstacles could invalidate a new leg higher.
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Free forex signals – Buy CAD/JPY at 98.24
Free forex signals entry price and take-profit
Order Type: BUY STOP
Entry price: 98.24
Stop Loss: 96.36
My Risk: 1%
Risk / Reward Ratio: 1:1.5
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