CAD/JPY - continued bearish movement to 78.00?

CAD/JPY has experienced a sustained bearish movement for the past couple of weeks, breaking to the downside from a consistent daily ascending trend channel. This event, coupled with the overall weekly bearish trend, means our bias is towards entering short positions. Price kissed the upper boundary of the weekly descending trend channel at the start of September, since then bears have flooded the market and currently there seems to be no hold up. On the 4H timeframe, price has been taking a breath, but we believe bearish momentum will be enough to force price down to retest at least the support at 78.00. There is also currently a 4H descending trend line that price is respecting, making for potentially a good entry. After 78.00, a secondary target would be the level of support at 77.13.

If price closes back above the daily ascending trend channel this analysis will be invalid.