The CAD/JPY currency pair is currently exhibiting a bearish trend structure, indicating a prevailing downward momentum in its price action. At present, the pair is trading within a secondary trend near a significant resistance level, which is a critical point that could determine its next directional move. Traders and investors are closely monitoring this level as a breakout or rejection here could set the tone for future price movements.
On the lower side, if the bearish momentum continues, the price may decline toward the target of 104.900. This level could act as a key support zone, where buyers might step in to halt further losses. A break below this support could intensify selling pressure, potentially pushing the pair toward lower levels. Conversely, if the price finds stability near this support, a short-term rebound could occur, providing traders with potential buying opportunities in a corrective phase.
On the higher side, if the pair manages to overcome the current resistance, it may attempt to test the next key resistance level at 108.300. A successful breakout above this level could signal a shift in market sentiment, possibly leading to a trend reversal or a stronger corrective rally. However, given the prevailing bearish structure, any upward movement may face strong selling pressure near resistance zones, limiting upside potential.
Traders should remain cautious and watch for confirmation signals before entering positions. Key indicators such as moving averages, RSI, and MACD can provide additional insights into momentum and potential reversals. Risk management strategies, including stop-loss orders, should be employed to mitigate downside risks in case the market moves against expectations. Overall, the CAD/JPY pair remains in a bearish phase, and its next major move will depend on how it reacts to the critical resistance and support levels mentioned.
On the lower side, if the bearish momentum continues, the price may decline toward the target of 104.900. This level could act as a key support zone, where buyers might step in to halt further losses. A break below this support could intensify selling pressure, potentially pushing the pair toward lower levels. Conversely, if the price finds stability near this support, a short-term rebound could occur, providing traders with potential buying opportunities in a corrective phase.
On the higher side, if the pair manages to overcome the current resistance, it may attempt to test the next key resistance level at 108.300. A successful breakout above this level could signal a shift in market sentiment, possibly leading to a trend reversal or a stronger corrective rally. However, given the prevailing bearish structure, any upward movement may face strong selling pressure near resistance zones, limiting upside potential.
Traders should remain cautious and watch for confirmation signals before entering positions. Key indicators such as moving averages, RSI, and MACD can provide additional insights into momentum and potential reversals. Risk management strategies, including stop-loss orders, should be employed to mitigate downside risks in case the market moves against expectations. Overall, the CAD/JPY pair remains in a bearish phase, and its next major move will depend on how it reacts to the critical resistance and support levels mentioned.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.