CADJPY Trade Plan. Will it continue upwards?

Good Afternoon Traders,

Following the recent spike in price on the CADJPY, a pull-back may occur before further upward movement. On the 16H, price has closed well above the 240-LMA and it appears new support may have formed around the 78.16-78.52 region. RSI has entered Overbought territory as well. Bearish Divergence is beginning to form on the 16H Price Chart/MACD. If price draws back to support and Bearish Divergence is formed, long-entry consideration would be made.

On the 3H charts, price has been Diverging from the MACD for 3 consecutive highs. A 4th area of Bearish Divergence is currently forming on the Price Chart/MACD. RSI has been in Overbought territory prior to the 3 previous draw-backs. RSI is again in Overbought territory and the previous conditions appear to be repeating themselves for a 4th time. (See attached 3H Chart)

If Bearish Divergence is formed and price draws back to support on the 16H, long-entry consideration would be made.


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*The above is not investment advice but simply my analysis of the current market conditions*