I believe this is a fake breakout of the bearish long term trend. RSI does not allow to go much further now. Price may either go down to the resistance or to the mid term bullish trend. You can allow a very tight SL with good risk/reward on both options.
We proposed to short CADJPY five days ago: (sorry, idea firstly published in Spanish, but you know, this is technical analysis). The price is currently forming a triangle on the H1 timeframe. Should we break it upwards, the idea is invalidated and we should apply SL. Should we go downwards,...
One the H1 we have a descending channel that may be broken by a sharp bullish tend with good momentum. We are right now at a key point, let's wait 2-3 hours to get in. Both scenarios may have nice risk/ratio reward.
Price may retrace to bullish either respecting the previous resistance (marked in dotted red horizontal line) or by formating a bullish harmonic butterfly pattern (marked in dark brown). In any case, wait for a bit of confirmation using price action, the MACD or at the RSI oversold.
Oversold on the H1 and H2 timeframes, may be a good opportunity to catch up and sell closer to the trend line. My expectation is a short bullish moment on the next couple of days to continue with the Daily bearish trend line afterwards.