CADJPY is at a strong resistance level of 90.75. This level is priming for a short sell. The fact that market rallied hard till the resistance, it needs to take a pullback in order to fill the remaining orders. If market starts to decline, we may see some sort of a bearish structure. Right now, market is in full throttle bullish structure.

The fibonacci retracement levels cannot be drawn reasonating with the bullish leg. We need to see a bearish leg in order to have swing points for the retracement.

CADJPY has an ascending trendline, which is below the current market prices. if market breaks this trendline for the breakout sells, it may induce further bearish pressure.

EMA 50 and 200, both are below the current market prices. At the support level, we may find the confluence of the EMA 200 with the support. This area, will act as our profit targets. Other than this, nothing much can be deduced from the charts.

RSI and CCI, both are in an over extended over bought region. From there, the bears took control and started to bring the market down. This situation is ideal for us to take shorts. 

It is to note that CADJPY, we are trading the counter trend from the resistance. If market happens to tap or break the resistance, we will immediately exit the market.

CADJPY priming for shorts

Oct 11 2021

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