CADJPY is in a downtrend, forming lower lows and lower lower highs.This means, we have another impulse leg pending downwards. Market has broken the support and is due to retest the broken support turn resistance. Once the resistance is tapped and the market has formed a price action. 

The ascending trendline is due for a breakout sell. Once broken out, there will be further confirmation on the breakout. The validation will be triggered after the candles have opened and closed below.

The retracement area is in confluence with the resistance level. This level is at 50% retracement of the bearish leg. Once at the resistance, we will have two multiple factors to add for the short sells.

The EMA 50 is bearish. Market still has not retested the prices and we can further adue that the market can breach after tapping the EMA 50, if it does.

RSI is at 41. It needs to neutralize at the resistance level and the region of 50. This neutralization will cause the market to floor down and continue its impulse move.

CADJPY shorts from resistance

Oct 11 2022

Stop Loss -0.56%

Holding time 22hr

105.948

Entry price

106.537

Stop loss price