CAD/JPY May Start Falling

CAD/JPY has been consolidating sideways below the (MA)89 indicator on the daily time-frame for two months now and said consolidation will likely continue, considering the candlesticks that continue to form below the aforementioned indicator. Namely, the pair has formed a doji candlestick and a spinning top candlestick, both on the daly time-frame, both below the resistance at 84.45. Although such candlesticks are a signal for indecision, rather than reversal, there could definitely be a new move to the downside. Next target will likely be around 82.00. On the other hand, if the pair breaks out above the indicator it could rise towards the last high, which is at 87.10.

CAD/JPY Is Bullish

 

CAD/JPY is clearly forming a wide long-term sideways consolidation with no end in sight. The pair did, however, bounce off from the support at 87.75 after forming several spinning top candlesticks and a hammer candlestick on the daily time-frame frame above that level. What is more, it has already broken out above the resistance at 88.65, which coincides with the (MA)89 indicator on the daily time-frame. The move to the upside will likely continue and the first target will probably be around 89.60, which is the last high. A breakout above that level could lead to a further move to the upside towards 90.85 or even to 91.60.

CAD/JPY Is Very Bearish

After two weeks of tight consolidation around the support at 84.85, which coincides with the (MA)89 indicator on the daily time-frame, CAD/JPY finally broke below that support decisively, and then broke below the previous low at 84.15 and continued moving to the downside. The pair is very bearish and there is every indication that it will continue falling, especially if you consider the shooting star candlestick and the spinning top candlestick that have formed on the monthly time-frame, both below the resistance at 89.00, which coincides with (MA)89 indicator on the same time-frame. The first major target to the downside for this pair is at 81.00, but a breakout below that level could lead to a further significant drop towards 76.00 – 75.60 in the long-term.