FX.co ★ CAD/JPY: downside reversal needs strong confirmation

CAD/JPY Uptrend Seems Over!

The CAD/JPY pair is trading at 108.95 at the time of writing and it seems undecided. As you can see on the H1 chart, the price moves sideways. It has turned to the downside after reaching the 109.45 yesterday's high.

The rate dropped below the uptrend line signaling that the uptrend is over and that the sellers could drag it lower. Technically, the 108.66 former low represents a downside obstacle. As long as it stays above this level, the currency pair could extend its growth.

CAD/JPY Trading Conclusion!

Dropping below the 108.66 downside obstacle should open the door for a larger drop. This could represent a new selling opportunity.