Possible Downturn in CADJPY

5 mar 2023

The CADJPY is still in an uptrend, although it has shown signs of weakening over the past three weeks. This is evident from the converging peaks and the inability to make new highs, as well as the appearance of divergences on momentum indicators. By examining the weekly chart, it is clear that there is a Doji candlestick, while the daily chart shows a bearish engulfing candlestick pattern, indicating strong selling pressure. Looking at the 4-hour timeframe, we can study the movement based on the general direction of the currency, and we can see that the price has formed a triangle pattern, which it is still responding to. We are waiting for the price to retest the upper edge of the triangle as a final attempt to climb before breaking the triangle and heading down towards 99.5.

-------------------------------------------------------------------------
Let me know your thoughts in the comments, and show your support by liking the idea.
Please follow if you're interested in more ideas like this.
Your support is greatly appreciated!