CADJPY has dropped from our selling area perfectly. We remain bearish expecting further downside pressure.
Sell below 82.77. Stop loss at 83.48. Take profit at 81.29.
Reason for the trading strategy (technically):
Price has reversed perfectly from our selling area and is dropping nicely towards our profit target. We remain bearish below major resistance at 82.77 (Fibonacci retracement, Fibonacci extension, bearish harmonic formation, horizontal pullback resistance) for a further drop to major support at 81.29 (Fibonacci retracement, horizontal swing low support). We do have to cautious about intermediate support at 82.08 (Fibonacci retracement, horizontal overlap support) which price might bounce off before dropping further. We can also see a bullish ascending support line which needs to be broken to give us further downside confirmation.
Stochastic (89,5,3) is seeing a nice drop after breaking its ascending support line with good downside potential.