CADJPY has established a strong correction after tapping its top. This is only voided if the currency tends to break the minor resistance level. Although the trend is still bullish as the previous low is not broken, we are betting on the retracement move towards the support level. The price we are looking to short at is 99.95. At this point, we will tak the shorts till roughly 100 pips off till 98.70. 

The ascending trendline has tapped the 2 pivots. Usually, the third time, market breaks the trendline. We will wait for the breakout as well for the confirmation. 

There is no retracement level on this setup at the moment.

EMA 50 is still bearish and might retest the EMA 50 at the minor resistance level. This level is presumed to be the confluence area for both the technicals.

RSI is at 36, which is the over sold region. It is nearing the exhaustion point, reaching towards the 25 level. We want to wait for the market to neutralize at the 50 level. At this level, we will potentially be touching the minor resistance.

Minor resistance shorts on CADJPY

May 11 2023