CADJPY 1H — Bullish Reversal SetupCAD/JPYOANDA:CADJPYQutabBasheerCADJPY has experienced a significant sell-off from the 115.50 area, creating a series of lower highs and lower lows. Price has now reached the 112.60–112.65 support zone, where buyers have started showing a reaction. 🔹 Technical Confluence 1. Key Support Price has respected the 112.60–112.65 area as support. The blue horizontal level marks the immediate demand/support zone. 2. Bullish RSI Divergence The strongest confirmation for this setup is the bullish divergence on the 1H RSI. Price made a fresh lower low, while RSI formed a higher low, indicating that bearish momentum is weakening despite price making new lows. 3. Fibonacci Retracement Using the recent swing structure, the major Fibonacci retracement levels provide potential upside targets: 0.382 → ~113.30 0.500 → ~113.60 0.618 → ~113.90 1.0 → ~115.00 The 113.30–113.90 region is therefore the first major area where price could encounter resistance. 🎯 Trade Plan Entry: ~112.80–112.90 Stop Loss: Below 112.60 TP1: 113.30 TP2: 113.60 TP3: 113.90 Extended Target: 114.50–115.00 The idea is to capture a mean-reversion/bullish retracement following the exhaustion of the recent bearish impulse. ⚠️ Invalidation The bullish setup is invalidated if price decisively breaks and holds below the 112.60 support area, particularly if the bullish RSI divergence fails. I would prefer to see continued price acceptance above 112.60–112.80 and a break of the recent minor high before adding further conviction to the long. 🧠 Trade Thesis Strong bearish impulse → major support → bullish RSI divergence → momentum exhaustion → potential Fibonacci retracement. This is not a call for an immediate trend reversal to new highs. The primary objective is to capture the corrective upside move while the larger 1H structure remains bearish. Risk management remains key — the setup has a clearly defined invalidation level below support. #CADJPY #Forex #PriceAction #TechnicalAnalysis #RSI #BullishDivergence #Fibonacci #ForexTrading #TradingPlan #TradeSetup #Sarmaaya.pk