The CAD/JPY pair on the M30 timeframe presents a potential selling opportunity due to the presence of a well-defined bearish channel pattern. This pattern suggests ongoing selling pressure and a higher likelihood of further declines in the coming minutes or hours.
Sell Entry: Consider entering a short position around the current price of 111.46, positioned close to the channel resistance. This offers an entry point near a potential reversal zone.
Target Levels: Initial bearish targets lie at the support levels of 111.07 and 110.82, marking previous support zones within the channel.
Stop-Loss: To manage risk, place a stop-loss order above the broken channel resistance line at 111.70. This helps limit potential losses if the trend unexpectedly reverses.
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Stronger JPY: The Japanese Yen (JPY) has been strengthening recently due to its safe-haven status amid ongoing geopolitical tensions. This could put downward pressure on CAD/JPY.
Weaker Canadian Dollar (CAD): The CAD has been under some pressure recently due to concerns about the global economic outlook and lower oil prices. This could contribute to a decline in CAD/JPY.