The CADJPY has broken out higher and through the major daily resistance level to now close out and above. After making this strong close out of the resistance level, price has formed a double inside bar pattern or back to back inside bars one after the other sitting on the old resistance and new support level.
In the 9th April | Daily Price Action Setups Commentary I posted about the pin bar reversal that had formed on the 2 day chart of this pair. You can read about that setup here; CADJPY Pin Bar Reversal. After confirming the pin bar, price made a break lower and moved straight into the near term support that we discussed in the commentary. Due to the super choppy market, price found support at the minor level and as expected rotated back higher.
Now that price is above the major daily resistance level it could look to become a major price flip level and a super important support level. This level could be crucial to where price goes in the coming days and weeks.
If price can hold at this level and the support holds, then the next strong push could be higher and these inside bars could be a price action clue that price is building price action order flow for the next strong push upwards.
If that is the case and price breaks higher of the inside bars, the next important resistance to keep an eye out for would come in around the 98.6500 area.
CADJPY Daily Chart
CADJPY Daily Chart
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