FxWirePro: CAD/JPY on verge of bottoming out after hammer formation – Digital calls to favour intraday bullish momentum, targets 4H resistance

The pair forms hammer pattern on monthly chart at 78.897 levels amid major bearish trend but this should not be isolated as there is no confirmation, but, yes daily and intraday sentiments have been bullish.

Let’s just have a glance on 4-hourly charts for major pivotal technical points:

Rallies supported by rising channel baseline and 7SMA and momentum signaled by leading oscillators.

The pair has jumped till 79.209 yesterday but could not sustain that level; bulls have resumed again today to take over yesterday’s rallies. It is currently trading at 79.021.

Major support – 78.9100 (4H-7SMA). 

Major resistance - 79.209 (Yesterdays highs).

Short term trend is likely to remain bullish as long as support 78.91 and 78.639 sustains decisively. 

Both leading indicators are converging to these prevailing price rallies, RSI is trending above 62 levels, while stochastic curves evidence bullish momentum as they show %K crossover. Current prices are consistently rising above SMAs.

On the higher side, we could foresee 79.209 levels realizing the bullish ongoing bullish momentum. 

On the contrary, the short-term weakness is seen only break below 78.639 mark. 

Hence, it is good to initiate longs in digital calls for the TP of 79.209 for a magnifying effect in profitability.

The Swing-15 Minute technicals are a fairly advanced form of trading to arrive with a better entry level. The system is based on support/resistance breakouts on 15-minute charts and is great for day and day-to-day trading. The strategy is very detailed and should be easy for experienced traders to follow.