The CADJPY has corrected from a double top as visible in this H4 chart and the decline was halted by quadruple support levels. This pair has a solid foundation to launch a rally from these levels. The rally may be halted by its 50 DMA.
MACD showed momentum turned bearish during the last correction and may be the last indicator to turn bullish. RSI has reached oversold territory; watch out for a breakout from this condition which would be a very bullish sign.
We recommend taking an initial long position at 79.75 with a potential second entry level at 79.00. Should this pair breach 79.40 to the downside we recommend hedging the initial long position before adding to existing longs.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 79.00. We will execute this trade as mentioned and do not utilize stop loss levels. Place your take profit level at 80.25.