FxWirePro: CAD/JPY interim bulls break falling wedge resistance on 4H but with bearish DMA crossover; expect rallies to extend but snap rallies for fresh shorts

Technical roundup:

This would be puzzling for you when we synthesized 4H analysis with dailies.

What’s buzzing on 4H chart: The current upswings attempt to break above 7SMAs and wedge resistance but struggling to sustain.

The rallies likely to drag maximum up to the next resistance of 86.795 with confirmation from momentum indicators.

Daily chart: On the flip side, we could foresee weakness in CADJPY when we consider the short term trend of this pair.

Despite today’s rallies, the prices have remained below DMAs; watch out for more dips as 21DMA crosses over 7DMA which is a bearish crossover (refer daily chart).

In addition to that, the leading indicators on this timeframe are converging to the current price declines that would suggest gaining momentum in selling pressures and likely to extend the ongoing trend.

Daily RSI has convincingly been converging with price declines at around 58 levels.

Slow stochastic has reached oversold territory but traces price recovery as %k crossover even below 20 levels is not convincing that would mean selling pressure is still visible at this point of time.

To substantiate this stance, MACD has also shown a bearish crossover slipping below zero levels, hence, down trend is likely to persist.

Trade tips: Well, it is wise to snap rallies and view them as better entry points for fresh short build ups for targets of 85.105 levels with strict stop loss of 86.9721 levels.

Alternatively, contemplating intraday bullish sentiments, we recommend on pure speculation basis buying one touch binary calls in order to extract maximum leverage for extended profitability, for maximum targets of 76.795 levels.

One can give a leveraging touch to your returns expectation if underlying pair keeps dipping by employing At-The-Money binary delta puts. But do remember these are exclusively for speculative basis.