CADJPY is showing a potential buy setup based on the Ichimoku Cloud analysis. If you are interested in this pair, read the full post below to have the exclusive Ichimoku cloud analysis.
The global economy is still under uncertainty, where most analysts highly expect the dollar depreciates.
However, as per the cycle analysis, we are currently in the last week of August, where a decent market correction or reversal of the present trend is expected.
Moreover, the present outlook of the CADJPY has the potential to move higher.
CADJPY Daily Price Above the Kumo Cloud
In the daily chart, we can see that the price failed to break below the Kumo cloud a week ago and building orders at the Tenkan Sen and Kijun Sen area.
Moreover, the price is hovering above the $80.00 event level, which is a potential indication of further upside. The Chikou Span is above the Kumo Cloud and price, which is also an indication of a bullish breakout.
Therefore, as long as the price trading above the Kumo Cloud and Kijun Sen dynamic level, it may move higher.
CADJPY Intraday Buy Setup
If we look at the H4 chart, we can see that the price is trading within a bullish leg correction and forms a potential double bottom.
Therefore, any bearish rejection from the bottom area is an indication of a bullish continuation.
However, in the hourly chart, the price is below the Kumo Cloud with a corrective momentum.
Therefore, a bullish hourly close above the Kumo Cloud and Tenkan Sen level would be a potential entry point for buy setup.
However, in the forex market, we trade on probabilities. Therefore, the bullish outlook is valid until this price is trading above the $79.80 area.
A strong bearish 4H close or Daily close below the $79.80 area may invalidate the current bullish outlook.
Read more: What is the Best Ichimoku Cloud Trading Strategy?
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