Good day traders! CAD/JPY bounced higher, as expected, after reaching my lower median line (see my 21st of November update). Price eventually retraced all the way back to my shorter-term upper median line and longer-term center median line and reversed lower again on the 2nd of December.
Price is currently trading at my short-term center median line and I would expect a drop towards the 81.00 price level or even lower to 80.43 if price trades below yesterday’s low at 81.51.
Note: The price structure from the October high is starting to look corrective to me, meaning that although I’m expecting lower prices that I don’t think CAD/JPY will challenge the 25th of August low. That being said, anything can happen, and only time will tell but for now my bias remains bearish over the short-term.
Until next time, happy and safe trading!