CAD/JPY - Bearish Gartley
Hey guys, back on the charts this week! Today I am looking at a bearish Gartley position on the cad-yen.
Oil has been rallying since June last year and is currently at a point of making a higher low. Should this turn out to be a level of resistance rather than just a higher low then we may see further decline for the value of the Canadian Dollar . Furthermore we are also awaiting this month's release of the Japanese interest rate, which is expected to remain at -0.1%. Their trade balance is also expected to have dropped by 219B.
With this pair we can clearly see on the daily chart that price has made created a new low, finding support before bouncing. We are now at a point where we are creating a lower high and testing a level where we have had previous support. As a result, this may be a key area to scope a short entry. On this occasion our risk:reward will likely be 1:2 as we are trading the Gartlery pattern- the entry points noted may be subject to change as per price action. We will also be using our 2 levels for TP1 and TP2 at the 0.382 and 0.618 levels respectively.
Gartley ratios are as follows:
C: 0.382 - 0.886
D: 1.272 - 1.618