CAD/JPY — Don’t be fooled by the sudden change, all good things can come to an end

CAD/JPY (99.55) — Trading in a very bullish position, and looking at the minute chart you would be inclined to believe it will continue very fast climbing.

Look at the climb — from 97.75 to 99.52 in a few hours.   Perhaps you missed this opportunity (1.81% without margin, for four hours).   Now, you might want to jump on the wagon and join the climb.   Let’s look at the daily chart:

Here, on the daily, we see the formation of a peak period.   This also occured on the 4th of September and also on the previous year.   Traders should be cautious.   The peak of any recorded period on any of this daily chart was at 100.90.  Therefore, we likely could expect the peak to maximize soon and start to fall.   Traders therefore could hedge against the trend and plan for the short or bearish position on the currency pair.   Here is the hourly chart :

If we were to look at just the hourly chart we would have no idea what is going on in the trend.  Traders — this is an example of how important it is to review multiple charts and scenarios.