The CAD/JPY currency pair, on the D1 chart, began an uptrend in the beginning of January that lasted until the end of February when sellers found the price attractive and started countering buying pressure. Supply overwhelmed demand and the market broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator cutting through the zero baseline, both confirming a possible technical reversal in the market. This was further reinforced by a Shooting Star Candle that formed on the 1st of March, indicating that buying power was not able to sustain the upward momentum.
A possible critical support level formed when a low was recorded at 82.401 on the 8th of March. The bulls however temporarily managed to push prices higher and a top was registered at 84.056 on 15 March.
If the price of CAD/JPY breaks through the critical support level at 82.401, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 82.401 and dragging it to the top of the pullback at 84.056, the following targets may be calculated. The first target can be anticipated at 81.337 (161 %). The second price target can be projected at 79.722 (261.8%) and the third and final target may be expected at 77.043 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the CAD/JPY market on the D1 timeframe will remain bearish.
A possible critical support level formed when a low was recorded at 82.401 on the 8th of March. The bulls however temporarily managed to push prices higher and a top was registered at 84.056 on 15 March.
If the price of CAD/JPY breaks through the critical support level at 82.401, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 82.401 and dragging it to the top of the pullback at 84.056, the following targets may be calculated. The first target can be anticipated at 81.337 (161 %). The second price target can be projected at 79.722 (261.8%) and the third and final target may be expected at 77.043 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the CAD/JPY market on the D1 timeframe will remain bearish.