FX.co ★ CAD/JPY: bearish pattern violated

The CAD/JPY pair is located at 107.73 at the time of writing. In the short term, it is moving sideways and it seems undecided. Still, technically, the price action signaled exhausted buyers, but a new leg down needs confirmation.

Fundamentally, the JPY remains under selling pressure as the Japanese Unemployment Rate increased unexpectedly from 2.5% to 2.7%. Later, the US data should have a big impact on the CAD/JPY pair. Tomorrow, Japan is to release the Consumer Confidence Index while the US ADP Non-Farm Employment Change and Prelim GDP could bring sharp movements in all markets.

CAD/JPY Retests The Sellers!

As you can see on the H1 chart, the CAD/JPY pair found resistance at the warning line (wl1) and now it has dropped below the uptrend line.

The 107.57 former low represents a static support. Now, it could try to test and retest the uptrend line and the warning line (wl1).

CAD/JPY Forecast!

A bearish closure below 107.57 is seen as a selling signal. The downside scenario could be invalidated only by a valid breakout through the warning line (wl1).