CAD/JPY: Will we see 80.000 by Friday?
Hello all, hope your week has gotten off to a good start.
Following last months bearish candlestick, price action this month began with a significant retracement which as of last week came to a halt as we plummeted back down from the 82.000 region to form a bearish engulfing on the weekly timeframe. Using this as a guideline, we go into this week with an overall bearish outlook on the Canadian Yen. Given this momentum follows through we should be primed to see further downside as we zoom into the lower timeframes.
From a daily perspective, price is hovering around support at the 81.000 region. We were able to see a strong break below our daily moving averages. Should we see a clean break below the 81.000 support, we will look to revisit our most recent swing low which was created at the beginning of the month (80.000). This pair is currently trending to the downside, which is clearly signified by the lower highs and lows present. Should we look to follow suit beyond 80.000, we can look to the 79.264 region which corresponds well with our Fibonacci extension.