{"id":63263,"date":"2014-11-06T11:47:58","date_gmt":"2014-11-06T16:47:58","guid":{"rendered":"http:\/\/countingpips.com\/?p=63263"},"modified":"2014-11-06T12:53:16","modified_gmt":"2014-11-06T17:53:16","slug":"double-top-could-drive-cadjpy-back-below-100","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/11\/double-top-could-drive-cadjpy-back-below-100\/","title":{"rendered":"Double Top Could Drive CAD\/JPY Back Below 100"},"content":{"rendered":"<div id=\"inves-2326388986\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 6, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <strong>Bearish<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Canadian Building Permits jumped 12.7% in September 2013, but\u00a0 Ivey PMI erased this bullish bias after posting a drop to 51.2 vs a consensus of 59.2;<\/li>\n<li>JPY shorts are taking profit across the board, raising the possibility of a much needed correction<\/li>\n<li>CAD\/JPY formed a Double Top reversal pattern near 101.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>Bearish technical signals are starting to add up, favoring a correction lower for CAD\/JPY following a 830 pip upswing. More confirmations are needed, although a speculative short position at current levels could result in a large R:R if the double top chart pattern plays out right.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/11\/CADJPY6thNovWeekly.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7647\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/11\/CADJPY6thNovWeekly.jpg\" alt=\"CADJPY6thNovWeekly\" width=\"700\" height=\"373\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">CAD\/JPY buyers are finally reacting to a resistance level for the first time in three weeks. Spot is currently trading at\u00a0100.40 during 6th\/11 U.S. session, down from a high of 101.20 reached during Asian trading. Based on overbought conditions and a negative RSI divergence showing on the Weekly chart, this rejection could lead to a temporary consolidation phase or a deeper correction in the coming days and weeks. This, of course, depends on price stabilizing below 101.04.<\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/11\/CADJPY6thNovember4H.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7648\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/11\/CADJPY6thNovember4H.jpg\" alt=\"CADJPY6thNovember4H\" width=\"700\" height=\"373\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">On the 4H chart we can spot a double top reversal pattern in the incipient phases. Today\u2019s top was confirmed by\u00a0a bearish engulfing bar, which helps determine risk for a potential short entry. Since there was little to no follow-up in intraday trading, we propose initiating short positions on a break below the major psychological handle of 100.00. Such a break would immediately target 99.27, CAD\/JPY\u2019s most recent Higher Low. As the chart clearly shows, a secondary support target is located at 97.70, only if price manages to invalidate the Higher Low swing structure with a break below 99.25.<\/p><div id=\"inves-2375766016\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p style=\"text-align: justify;\">On the other hand, if CAD\/JPY rallies and ultimately stabilizes above 101.04\/20, buying momentum could lift the pair up to 104.00 within a very short period of time, with long-term targets extending as high as 107.50.<\/p>\n<p style=\"text-align: justify;\">*****<br \/>\nAnalysis provided by <a title=\"Capital Trust Markets\" href=\"http:\/\/capitaltrustmarkets.com\" target=\"_blank\">Capital Trust Markets<\/a><\/p>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Bearish Key Takeaways Canadian Building Permits jumped 12.7% in September 2013, but\u00a0 Ivey PMI erased this bullish bias after posting a drop to 51.2 vs a consensus of 59.2; JPY shorts are taking profit across the board, raising the possibility of a much needed correction CAD\/JPY formed a Double Top reversal pattern near [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-63263","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=63263"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63263\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=63263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=63263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=63263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}