CAD/JPY Is Falling

After almost two weeks of sideways consolidation CAD/JPY finally formed a doji candlestick below the resistance at 78.35, which coincides with the (MA)89 indicator on the four-hour time-frame, and started moving to the downside. What is more, the pair broke below the support at 77.50 and continued dropping. Its next target is likely the support at 76.00 – 75.90. A breakout below that level will probably lead to a further move to the downside towards the previous low at 75.39. For now it is too early to tell whether the pair will break below that level as well and we should keep in mind that the continuation of the bearish trend will not be confirmed before it does.