CAD/JPY Crown Exhaustion

CAD/JPY Crown Exhaustion
April 20, 2017 Marc McLain

Exhaustion at the tip of the crown generally leads to or indicates profit taking.   This pulls the market back in the other direction and gives us a nice opportunity to make some money with great risk versus reward.   Lately, we have seen the CAD/JPY in a little mini channel on the short side for most of this week.  If we look at the bigger picture we see that this channel is actually just the right leg of a crown that just hit the D or filled.   It’s a great time for people shorting to take a profit, and logically a great time for people looking to buy the market to find bullish signs and start buying. On the 2-hour it looks something like this:

You’ll see I had a pending order anticipating the right tip of the crown hitting and then pulling back.   (Basic principal of the UTP.)  Now we need to understand where the market might go.  We have a commodity pushing this currency to the un-hit weekly target in my opinion and I like risking smaller stops for larger rewards that I don’t feel I have to manage much. Here is a potential exit plan on this pair:

 As you see we can probably break this trade down into two (2) pieces.   However, I plan on risking about 45 pips here and going for about 105 pips. Good luck, and as always I hope this helps you!
Summary
April 20, 2017: CAD/JPY Crown Exhaustion and UN-HIT weekly target map out the rest of the week
Article Name
April 20, 2017: CAD/JPY Crown Exhaustion and UN-HIT weekly target map out the rest of the week
Description
Market Traders Institute Forex analyst Brian Thomas profiles the latest trading opportunities using strategies he's employing this week. Today's review of CAD/JPY crown exhaustion provides a nice opportunity to make some money with great risk versus reward.
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Market Traders Institute
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