Nice identification of an ascending channel on CADJPY and there may be potential gains as you have identified by going short. For our set up, we have identified the key resistance and support levels. Currently price is approaching our first resistance at 86.25, which is a horizontal overlap resistance, with a 100% Fibonacci extension and 23.6% & 23.6% Fibonacci retracement. RSI is seeing a bearish exit and we could see a corresponding drop in price. Ichimoku cloud is also showing signs of bearish pressure. If a corresponding drop does occur, we may want to take a look at the 83.84 major support, which is a horizontal swing low support with a 76.4% Fibonacci retracement. Excited to seeing how things develop.
Please take a look at our idea and share with us what you think.