CAD/JPY Maintains Bearish Trend Structure – Key Levels to Watch
The CAD/JPY pair continues to exhibit a clear bearish market structure, characterized by consistent lower lows and lower highs on the price chart. This pattern confirms sustained selling pressure, suggesting the downtrend remains intact for upcoming trading sessions. Traders should watch for potential downside extensions while monitoring key resistance levels for possible trend reversals.
Bearish Confirmation: Lower Lows and Lower Highs
The formation of successive lower lows and lower highs demonstrates firm control by bearish traders. This classic downtrend pattern indicates weakening demand for the Canadian dollar against the Japanese yen. Until this structure breaks, the path of least resistance remains downward.
Downside Target: 104.900 in Focus
If selling momentum persists, CAD/JPY could test the next support level at 104.900. A decisive break below this level may accelerate declines, potentially opening the door for further bearish movement. Traders should watch for price reactions near this zone for potential continuation or consolidation signals.
Resistance Zone: 106.250 as Key Barrier
On the upside,106.250 stands as a critical resistance level. Any corrective rallies toward this zone could attract fresh selling pressure, reinforcing the bearish outlook. Only a sustained breakout above this resistance would signal a potential trend reversal, shifting momentum in favor of buyers.
Market Outlook: Bearish Dominance Expected
Given the prevailing price action, CAD/JPY is likely to remain under bearish control. Factors such as commodity price fluctuations (particularly oil, which impacts the CAD) and risk sentiment (influencing the JPY) may further drive the pair’s movement.
Conclusion
CAD/JPY’s bearish trend remains strong, with 104.900 as the next downside target and 106.250 acting as a key resistance. Traders may consider shorting rallies near resistance with proper risk management, while a break above 106.250 would require reassessment of the bearish bias.
The CAD/JPY pair continues to exhibit a clear bearish market structure, characterized by consistent lower lows and lower highs on the price chart. This pattern confirms sustained selling pressure, suggesting the downtrend remains intact for upcoming trading sessions. Traders should watch for potential downside extensions while monitoring key resistance levels for possible trend reversals.
Bearish Confirmation: Lower Lows and Lower Highs
The formation of successive lower lows and lower highs demonstrates firm control by bearish traders. This classic downtrend pattern indicates weakening demand for the Canadian dollar against the Japanese yen. Until this structure breaks, the path of least resistance remains downward.
Downside Target: 104.900 in Focus
If selling momentum persists, CAD/JPY could test the next support level at 104.900. A decisive break below this level may accelerate declines, potentially opening the door for further bearish movement. Traders should watch for price reactions near this zone for potential continuation or consolidation signals.
Resistance Zone: 106.250 as Key Barrier
On the upside,106.250 stands as a critical resistance level. Any corrective rallies toward this zone could attract fresh selling pressure, reinforcing the bearish outlook. Only a sustained breakout above this resistance would signal a potential trend reversal, shifting momentum in favor of buyers.
Market Outlook: Bearish Dominance Expected
Given the prevailing price action, CAD/JPY is likely to remain under bearish control. Factors such as commodity price fluctuations (particularly oil, which impacts the CAD) and risk sentiment (influencing the JPY) may further drive the pair’s movement.
Conclusion
CAD/JPY’s bearish trend remains strong, with 104.900 as the next downside target and 106.250 acting as a key resistance. Traders may consider shorting rallies near resistance with proper risk management, while a break above 106.250 would require reassessment of the bearish bias.
Trade closed: target reached
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.