Close Out Long CAD/JPY
The model we are following hints that prices may struggle a bit near current levels and begin another correction lower. It appears the pair is in the final stages of an upward impulse. Additionally, RSI is sporting divergence on an intraday chart, which is common at this point in the wave count.
If a correction develops, a common retracement may move back to 86.50. One possible scenario points to a retracement back towards our point of break out near 83.74. We cannot say for sure if the correction takes hold, but the bulk of the near term uptrend is behind us so we will await and see if a corrective dip lower develops and may reconsider another long position from lower levels.
---Written by Jeremy Wagner, CEWA-M
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.