CAD/JPY developed a bullish momentum during the last 3 weeks… It seems that this bullish momentum is part of a potential wave 4 correction and we are now looking for the end of wave 4 and the start of wave 5.
We will review different scenarios as the pair can either bounce for a downtrend or expand the bullish momentum within wave 4.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
As seen in the below chart, the pair had a strong downtrend by offering 3 bearish waves, which was then followed by a bullish momentum. In my view, this is probably part of wave 4 and now the pair can either bounce for a downtrend and start wave 5 or expand the bullish momentum within wave 4… Here are the main conclusions:
So I expect that the pair has an appointment with the bearish momentum of wave 5 but we still need more confirmation before trading this pair… in the next paragraph we will discuss this development by using SWAT software.
Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart indicates a bullish momentum and needs some developments to confirm the bearish wave 5 starts… Here are the main developments to consider:
So in my view, traders should wait for the confirmation before trading this pair and look for sell opportunity only as it matches the expected wave pattern.
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