CAD/JPY Long-Term Trend: Bearish
Key Resistance Levels: 87.10, 86.75, 86.09
Key Support Levels: 87.99, 88.80, 89.73
The price on the higher time frame posted lower lows and highs which shows that we are in clear downtrend. It managed to break the daily support around the 87.99 USD mark with a big bodied bearish candlestick.
CAD/JPY Medium-Term Trend: Bearish
On the lower time frame, the pair succeeded to break the bearish pennant formation after posting an inverse head and shoulders and found sellers around the 50 % Fibonacci retracement level. This led to a move lower and we expect a higher correction to the neckline of the pattern before an impulsive wave to the downside.
Sell Limit Order @ 87.96
TP 1 @ 87.13
TP 2 @ 86.75
Stop Loss @ 88.23
Trade Safely 🙂