CAD/JPY: Is 82.900 On the Cards?
Good morning all, I hope we've had a great weekend and are ready for the trading week ahead.
A followup on this pair's analysis from last week, we did see a retracement which delayed the overall downside bias discussed. However, we look poised to break below the crucial region of daily support.
More visible on the H4 timeframe, we can see that last week's retracement helped to form a head and shoulder setup as well as lining up with key retracement zones before tanking back down to the 83.300 region. Since then, price action has managed to remain below our moving averages which have now crossed to the downside. All these factors help to stack confluences in our favour and strengthen our bias.
Patience has played a crucial part in monitoring the trade and not being swayed into switching biases prematurely.
A consideration to make with take profits on this short, we do have an ascending trendline that may stagnate a smooth follow through to TP regions discussed prior. We do have some confluence for a TL encounter around 82.900.
If we do see a break below this dynamic support we could be in for a further significant decline.