FxWirePro: Don’t get bull trapped in CAD/JPY, go long only above 88.995, else likely to retest 87.400

The successful outcomes may not be possible only from accurate technical or fundamental or any other analysis in this world. Shrewd trades have to control human instincts.

Yes, we're referring to CADJPY it is not always go long or short that makes you more money, market wouldn't necessarily need to behave according to our whim fancies.

Wait and watch would be the best deal for today to tackle this pair.

It is struggling since 21st August to clear and sustain crucial resistance at 92.90 levels, as a result we've been noticing steep slumps.

We had earlier started the divergence about the previous sideway trend that has shown their effects so clearly.

Monthly RSI has begun converging with bearish engulfing pattern at 45 level (Currently, RSI at 41.2581), while slow stochastic is also stating more selling pressures and we observe %D line crossover still maintains even below 20 levels on monthly terms that signals selling pressure to prolong.

The prevailing prices have slid way below 21DMA (both on monthly and daily charts) that signifies the current price drops would drag further to find strong support zone at around 87 levels to bounce back again.

Trade recommendations: As the pair is likely to hit levels around 87 zones, it is advisable to use rallies to buy binary delta puts with strict risk appetite upto 88.590 zones.