CAD/JPY Forex Analysis and Forex Signal - SlickTrade Academy - Nadex and Forex

We received a short signal on the CAD/JPY the other day, on the D1 timeframe. This was sent from our Harmonic Pattern EA, which holds a 90% accuracy rate on the CAD/JPY.

What Others Are Predicting

in confluence with the long term downtrend

Pattern: 1M Channel Down. Signal: Bearish once the Lower High is made (near the 1W Resistance) after the 1D Golden Cross takes place. Target: 79.000.

CAD/JPY is in its bearish trend for a long period of time. Thus short positions look more attractive right now. In a short-term period, starting from October the 3-rd canadian dollar was rising against JPY but after reaching its highest high at the end of October, correction started. Technical analysis On November 11 -th the pair broke the local trend line down and canadian dollar started falling down again. Simultaneously CAD broke 23,6% Fibo level. The first target for the price is 200-EMA or 82,21. Next target is 50% correction or 81,685. Indicators are reflecting the bearish trend . 9-EMA is heading down; MACD lines are decreasing; DMI are heading down too. Fundamental analysis During the last week several macroeconomy indicators were published. They demostrated the slowing down in Canada: • Building permits decreased in September by 6,5% • Ivey PMI for October dropped below 49 This week we are expecting japanese GDP for the third quarter. According to analysts GDP has to grow by 0,2%. Meanwhile retail sales indicator in September increased significantly. Industrial production increased too. It hopefully means that GDP might be even better than forecasted and it definitely will give a positive impulse for JPY.

My Thoughts!

Price has reached a strong resistance level on the D1 timeframe.
We received a short from our harmonic pattern EA.
Set SL above the previous resistance level of 83.700

Our short target range is 81.932 – 80.662

Cheers to another successful week!