The CAD/JPY pair has seen multiple closures below the critical resistance level of 110.45, significantly dampening the prospects of establishing new positive positions. It has settled into a sideways trajectory near 109.90.
Anticipating a resurgence of negative momentum, we foresee the initiation of a corrective bearish trajectory. This could potentially target the support level at 109.10, with a subsequent aim to reach the Moving Average 55 (MA55) around 108.15. However, a breakthrough of the resistance barrier, accompanied by a positive close above it, would signal a resurgence of bullish momentum. In such a scenario, we could anticipate a reinitiation of the bullish trend, potentially aiming to surpass the recent high at 111.15.
Today’s expected trading range spans between 110.20 and 109.10, with the overall trend outlook leaning bearish.