CADJPY Rising Wedge| Daily S/R| 200DMA| Bearish Divergence

Evening Traders,

Second analysis for today, I will try to produce two pieces of content daily,

CADJPY – trading under Daily S/R in a bearish formation, a bearish retest is probable here.

Points to consider,
- Rising wedge (bearish pattern)
- Daily S/R (Resistance)
- 200 DMA (Confluence)
- Bearish Divergence (RSI & Stochastics)

CADJPY is trading in a rising wedge under technical resistance, this gives us a bearish bias on the market.

The Daily S/R is likely to be respected, as this is a bearish retest of the level.

The 200DMA is in confluence with the lower Daily S/R. Price is likely to come down for a retest of the structure.

There is a valid double bearish divergence on the oscillators. Indication of weakness is in the market, increasing probability of a bearish retest.

Overall, in my opinion, CADJPY is a valid short with risk defined above Daily S/R. Price action is to be used upon discretion/management of trade.

Hope this analysis help!

Thank you for following my work!

And remember,

“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas