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FxWirePro: CADJPY trades slightly lower after one month continuous bull run, stay short

Harmonic pattern formed - Bearish Gartley

 

Potential Reversal Zone (PRZ)- 91.58

 

As per our analysis CAD/JPY has halted its one month of continuous bullishness after hitting high of 89.21 level. The pair has formed Bearish Gartley pattern and any break above 91.58 confirms bullish continuation. It hits low of 87.94 and shown a minor recovery.

 

On the lower side, near term support is around 87.75 (10- day MA) and any break below targets 87/86.77. The pair should break below 86.75 (20- day MA) for further weakness.

 

The near term major resistance is around 89.45 and any violation will take the pair to next level of 90/91/91.58.

 

It is good to sell on rallies around 89-89.10 with SL around 90 for the TP of 87.60/86.65.

 

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