CAD/JPY: Expecting Bears To Push Price All The Way To 82.700
Good afternoon all, hope you've had a good trading week so far and capitalised on some of the setups presented on EverythingFX so far
Taking a look at this pair, from a weekly perspective, price has managed to spike through the 83.800 zone of resistance for the sixth time in the last 10 weeks. After an aggressive drive into this region the body of our candle is sandwiched between the weekly moving averages which indicates weakened bullish pressure.
Taking a closer look on the daily, Monday carried through a strong follow-through of bullish pressure from Friday. The last three days have seen price settle down and consolidate before its next significant leg of price action.
With the failure to form a new high beyond the most recent to invalidate the bearish trend, the outlook on this pair remains bearish. We await a break below the highlighted blue support level before heading for a third trendline encounter which on a break could easily form a new swing low once we break passed our daily range support highlighted in yellow. Our first target would be 82.700 and the extended target would be 82.000.
Ivey PMI data will be out this afternoon at 3PM. So it is likely we may see a stall in price until then as the release may act as a catalyst for a fresh leg of price action.