CADJPY is a textbook breakout and retest. The market has the potential to continue moving down. The market only needs to print a bearish indication or a pinbar for the market to continue moving down. The trend is already bearish with the formation of lower lows and lower highs with the bearish trend. 

The ascending trendline has been broken out for sells and has been validated for the opening and closing of the candles. 

There is no retracement indication in this particular setup.

The EMA 50 has just recently broken out for sells. The retest will be done at the resistance level where we see a confluence of the level and EMA 50.

RSI is at 37. If market neutralizes at the 50 level mark, we will have three factor confirmation for the market to continue its bearish impulse move.

CADJPY shorts

Jan 12 2023