CADJPY — Confluence at the Green Belt 🔎🟩

[theSignalyst]

CADJPY has been drifting lower inside a descending channel (red), and price is now pressing into the green support zone right at the lower channel boundary (blue). This is a classic confluence area where the next swing is likely decided.

Read

Short-term trend: Bearish channel with lower highs.

Location: Green demand + lower channel = potential reaction zone.

Scenarios

Bullish (counter-trend): Hold the green belt and print a higher low → room for a relief leg toward the channel mid / upper rail.

Bearish (with trend): Clean daily close below the blue rail/green zone → continuation of the down-channel, opening lower swing targets before any bounce.

Plan
I’ll look for longs only on confirmation (rejection wick / bullish engulfing / break of minor LH), otherwise I’ll stand aside or trade with the trend on a confirmed breakdown.

What’s your play here — fade the confluence bounce or wait for a breakdown to ride the channel?

️ Disclaimer: This is not financial advice. Always do your own research and manage risk properly.
Stick to your trading plan regarding entries, risk, and management.

Good luck!

All Strategies Are Good; If Managed Properly!
~Richard Nasr