CADJPY has been forming lower lows and lower highs and the trend is bearish as well. Market tapped the support level and is heading upwards towards the resistance level where we are looking to go short. If any candlestick indication is provided such that the candle is bearish pinbar or engulfing at the resistance level, we will take the short positions. 

The descending trendline is on the verge of being retested at the resistance level. If tapped and rejected, we will have a doubel confirmation for the downside.

The retracement level of 75% is in play in this setup. The retracement levels are well in confluence with the resistance level. This makes it a strong foothold for the market to move down.

EMA 50 is bullish at the moment. Once the market starts to move down, we can target the EMA 50 retest as our 1st profit target.

RSI is at 52. We need to see a divergence formed at the over bought region from where the technical factors will be in confluence with the resistance level. This oscillator confirmation will be a strong footing for the market to pave down.

CADJPY shorts from resistance

Jan 26 2023