On the 4-hour timeframe, CADJPY has formed a well-defined Double Bottom pattern, a classic bullish reversal formation that often signals the end of a downtrend and the beginning of a potential upward move. The pattern is characterised by two consecutive lows occurring at a similar price level, indicating that sellers have attempted to push the market lower on multiple occasions but have failed to establish new lows.
The neckline of the pattern, formed by the swing high between the two bottoms, represents a key resistance level that traders closely monitor. CADJPY has now broken above this neckline, providing confirmation of the Double Bottom formation and suggesting that bullish momentum is gaining strength. This breakout indicates that buyers have successfully taken control of the market and may continue to drive prices higher in the coming sessions.
The breakout is particularly significant because it confirms the completion of the reversal pattern. In many cases, the neckline that was previously acting as resistance may now serve as a support level, strengthening the bullish outlook. Traders often view such breakouts as favourable opportunities to enter long positions, especially when accompanied by increasing momentum and strong price action.
Based on the current technical structure, further upside is expected as the market continues to build on the bullish breakout. The first profit target (TP1) is positioned at the next significant resistance level of 116.00, where price may encounter selling pressure. Traders may consider securing partial profits at this level or adjusting risk management parameters to protect gains as the trade progresses.
While the technical outlook remains positive, traders should continue to monitor price action around the breakout area. Maintaining support above the neckline would reinforce the bullish scenario and increase the likelihood of CADJPY reaching its target at 116.00.
Author of the bestseller 'Start Trading Smart' | Founder - Tradewisenet Academy Pvt. Ltd.| Tradewisenet.com
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
Author of the bestseller 'Start Trading Smart' | Founder - Tradewisenet Academy Pvt. Ltd.| Tradewisenet.com
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.