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The CAD/JPY has moved up in a steady bullish channel since the beginning of 2009.  The pair recently bounced down off the top of the channel, which is forming a bearish Gartley on the 2hr Chart.  The Gartley would complete near the bottom of the bullish channel, which is the ideal scenario when going long. 

We are looking to buy the CAD/JPY if it falls to 79.00 (Point D).  Point D is located at the convergence of the following points:

61.8% Fibonacci retracement of XA on the 2hr Chart.

161.8% Fibonacci extension of BC on the 2hr Chart.

AB=CD

Pattern would complete at the bottom of the bullish channel on the Daily Chart.

If RSI falls below 30.

The pattern is fairly straightforward as described above.  This pattern is a textbook setup at this point.  We will now go over what to watch for assuming the pair continues falling toward our entry at 79.00.  First, we need to watch how quickly CD completes.  We are looking for the CD leg to drop slowly and enter the trade near our hypothetical entry on the 2hr Chart.  If there are long bars near the completion of the CD leg, we will not take the trade.  Also, if the pair comes within 15 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair rises above 81.90 before hitting our entry.

To recap, we will look to buy the CAD/JPY at 79.00 with our stop placed at 78.42.  Our initial profit targets are 79.89 (38.2% of CD) and 80.60 (61.8% of CD).

Daily Chart - Pattern would complete at the bottom of the bullish channel.	2hr Chart - Bullish Gartley; buy @ 79.00.

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