CADJPY is currently hovering at the price of 100.42, whereas the resistance stands at the 101.80. This resistance needs to be tapped once again in order for us to take the short positions. The market needs to position itself at the resistance with the engulfing bearish candle or price action so that we can take the prompt sell from the level. The market is in a bearish trend with the lower lows and lower highs. 

The descending trendline might be broken out for the buys but that does not mean that the market has turned bullish. We have to wait for the structure to turn bullish in order for the breakout buy to work out.

The retracement level of 61.8% is in confluence with the resistance level. This level needs to have a confluence of the fundamental aspect of regulation.

EMA 50 is bearish and we do not see an upcoming retest of the EMA given the EMA is still farther from the current price action.

RSI 14 is at 37. This level needs to be neutralized at our confluence area of the resistance, priced at 101.80. If not neutralized, it might be in an over bought region, where we can wait for the market to form a bearish divergence.

CADJPY looking for a retest of the resistance

Dec 15 2022