CADJPY testing 1st resistance, potential for reversal!

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Price is testing 1st resistance, which is in line with 78.6% Fibonacci retracement, 10% Fibonacci extension, horizontal swing high resistance and descending trendline resistance. We could potentially see a reversal at this level and further downside towards 1st support, in line with 61.8% Fibonacci retracement and horizontal overlap support. Stochastics is also reacting at the upper 83.71 level where it has reversed off before.

Trading Recommendation

Entry: 86.560

Reason for Entry:

78.6% Fibonacci retracement, 10% Fibonacci extension, horizontal swing high resistance and descending trendline resistance

Take Profit: 86.003

Reason for Take Profit:

61.8% Fibonacci retracement and horizontal overlap support

Stop Loss: 86.791

Reason for Stop Loss:

161.8% Fibonacci extension and horizontal swing high resistance

The material has been provided by InstaForex Company - www.instaforex.com

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