- CADJPY bounced off the key short-term support at 104.05
- The pair has been trading in a downward move since 2nd of May
Recommendation:
Trade: Short position on CADJPY at market price
Target: 103.35, 103.10
Stop: 104.20
Opinion: CADJPY has experienced a local upward correction recently. Looking at the H1 interval from a technical point of view, one can see that buyers managed to halt an upward move at key short-term resistance. Red area on the chart below near 104.00 is marked with the upper limit of the 1:1 structure and 100-period moving average. In addition, the shooting star candlestick formation appeared on the chart. Taking this into account, continuation of a downward move looks to be the base case scenario. We recommend taking a short position on CADJPY at market price with two targets: 103.35 and 103.10. We also recommend placing a stop loss order at 104.20 Source: xStation5
