The CADJPY currency pair recently made an effort to stage a correctional rally, probing the once-supportive boundary of a bullish channel. However, this boundary has since transformed into a formidable resistance, positioned firmly at 109.45. This development reaffirms our previously suggested bearish outlook for the pair.
Anticipating further downside momentum, our analysis points towards an initial target of 108.25, representing a key obstacle on the path to lower levels. A decisive breach of this level is poised to unlock further bearish potential, with a subsequent move towards 107.65 in the offing. Notably, a break below 108.25 could pave the way for an approach to the 23.6% Fibonacci correction level at 107.10.
In today’s trading session, investors should closely monitor the CADJPY pair, with the expected trading range oscillating between 108.50 and 107.65, signaling a persistently bearish sentiment.
Today’s Trend Outlook: Bearish