CADJPY - Bullish or Bearish bias?

PAIR IN FOCUS: CADJPY
ACTION: SHORT
HORIZON: SHORT-TERM

In the overall picture, we can see that price has reached the upper bound of a rising wedge pattern and is retesting it. A bearish RSI divergence on the H4 hints at an incoming price correction. Watch for bearish price action before any SHORT entry.

IMPORTANT: There are some bullish signals for this pair as well. On the Weekly time frame, we have a bullish engulfing candle, and we have an inverse head and shoulders pattern in the rising wedge pattern. Possibility that this trade set-up does not work out, or it reaches a few TP and then go bullish.

The TP levels and Stop Loss are indicated on the chart. Remember to manage your risk!

Feel free to discuss and comment, Cheers!

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