CADJPY is showing a bearish flag.
The long downward trendline is the 'flag pole' leading up to the flag.
In the flag pattern, the price makes higher lows and lower highs to make a 'flag-like' pattern. Eventually, price will break out of this pattern.
The trend before the pattern was created was bearish with a dominant downtrend. It is likely that the price will break below the pennant glad and continue this downward trend.
Before entering a short trade here, I will wait for confirmation of a breakout by 4H bearish candles, and looking for a potential re-test of the trend line before the downtrend plays out.
The long downward trendline is the 'flag pole' leading up to the flag.
In the flag pattern, the price makes higher lows and lower highs to make a 'flag-like' pattern. Eventually, price will break out of this pattern.
The trend before the pattern was created was bearish with a dominant downtrend. It is likely that the price will break below the pennant glad and continue this downward trend.
Before entering a short trade here, I will wait for confirmation of a breakout by 4H bearish candles, and looking for a potential re-test of the trend line before the downtrend plays out.