As long as daily closing price remains below the most recent high at 81.45, the selling pressure for the CAD/JPY will continue to increase.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
Click below to open a Free Demo Account with our trusted brokers:
Analysis Details:
CAD/JPY symbol on the MT4 platform
Type: Bearish
Key support levels: 0.8096, 0.8042
Key resistance levels: 0.8130, 0.8145
Price Action:
The CAD/JPY uptrend seems to have exhausted itself which means that time for the correctional move down could have come. This is because price has formed a bearish divergence on the RSI oscillator after which broke below the 50 Exponential Moving Average.
This could be a strong bearish indication, resulting in the price decline towards the 80.42 support. This support is confirmed by two Fibonacci retracement levels, 88.6%, and 50% Fibs as per the chart below. It is also confirmed by the previously formed supply/demand zone as well as the lower trendline of the ascending channel.
As long as daily closing price remains below the most recent high at 81.45, the selling pressure for the CAD/JPY will continue to increase. It is possible that the pair will produce the double top near the 81.45 and can even produce a spike higher. However, only daily break and close above will completely invalidate the bearish forecast after which uptrend continuation can be expected.
To get exclusive Trading Signals, join our Premium Channel just for $29 per month
START LEARNING FOREX TODAY!
Leave a Reply