Hey guys,
CADJPY has began to pivot around the neckline of a head and shoulders on the daily/weekly chart. Price found support at this level on the 4 hour chart, made a new low and is now retesting the previous los as resistance. Recent dips and rallies have been urgent and direct in recent weeks, however price dropping below the 4HR 200EMA at this neckline gives a sign that we should see some consolidation before another fluctuation.
Risk is 1:3 in this case because we are testing the resistance, as opposed to trading the breakout (I wanted to see if price would break first, in case it continued north after breaking the H&S neckline).
Head and shoulders can be seen below, along with previous support/resistance .
Bat Ratios
X:B = 0.38-0.5
A:C = 0.382-0.886
B:D = 1.618-2.618
X:D = 88.6%
Good luck team!