Analyzing the weekly chart of the Canadian Dollar versus the Japanese Yen, there’s a double top that broke out in the past week. Price has been quite choppy for the last year and three months throwing different patterns at different stages of the consolidation. Currently the double top with a break out below is a potential bearish indication.
Ensuing the breakout , we need to see a confirmation candlestick which will increase the probability of price falling lower. The confirmation may come as a retest or another bearish candlestick. One can observe the price action confirmation on a lower time frame such as the daily, for clearer and prompt signals.
We last looked at the weekly chart of the Australian Dollar versus the Japanese Yen at the beginning of last month where our mother candle was the last candle on the chart. Ours was to see for how long the bears would control this market. The 3 following weeks candlesticks’ resulted in forming inside bars. Later there was a breakout candle that went all the way to the beginning of the ascending wedge.
Inside bars are potential continuation candlestick patterns. Testament to that is the breakout candlestick that continued the downtrend.In our comprehensive Forex course we teach on trading various chart patterns wedges included. This particular wedge played out exactly how we teach especially on the target and it’s no surprise we had a bearish bias all along.
Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.