Good day traders! The CAD/JPY currency pair has run into strong overhead resistance and we might see price trade lower in the near-term.
Using the September 2017 high as my starting point (Chart above), I drew a downward sloping Schiff pitchfork which has managed to contain price action pretty well. Price has recently struggled to break through the center median line to the upside and reacted lower, leaving a weekly red reversal candle behind last week.
Last week’s high came within a fraction of an upward sloping channel and reacted lower. Price then found support at a previous high (red dashed line) and has since bounced towards my center median line again.
A break below the 82.09 level could see price target the bottom of my channel, but if price does not find support there, then we could see a deeper decline.
Until next time, happy and safe trading!