CADJPY has been locked in a 200 pip range since early February of 2015. This range commenced after the pair lost nearly 1,500 pips between December of 2014 and late January of 2015.
Last week the pair gave us a bullish inside bar + pin bar combination at the 94.35 key support level. This setup was traded by Daily Price Action members, netting us 130 pips.
Fast forward to yesterday’s price action and we can see that the pair put in a bearish engulfing day on the back of FOMC headlines. This gives us yet another chance to trade the range between 94.35 and 96.28.
The key level of support I’m watching in the days ahead is 94.35. Any push above yesterday’s high at 96.63 would negate the setup.
Summary: Potential to sell yesterday’s bearish engulfing day on a retrace back to the 96.10 region. Key support comes in at 94.35.
Guest post by Justin Bennett of dailypriceaction.com
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