The CAD/JPY pair dropped as much as 104.21 today, registering a new low, but it has failed to take out the 104.23 key support. You already knew from my previous analysis that the BOJ should have a big impact today.
As expected, the Bank of Japan left the BOJ Policy Rate at -0.10% as expected. The BOJ Press Conference could bring high action. Also, the Canadian GDP is seen as a high-impact event and is expected to report a 0.3% growth compared to the 0.0% growth in the previous reporting period.
CAD/JPY Under Massive Pressure!As you can see on the H4 chart, the rate dropped below the major uptrend line indicating a potential broader correction. It has failed to stabilize above the uptrend line in the last attempt indicating strong downside pressure.
Technically, the 104.23 former low represents a key downside obstacle. As long as it stays above it, the price could develop a new bullish momentum.
CAD/JPY Outlook!Dropping and closing below 104.23 activates more declines. This scenario is seen as a new selling signal.