CAD/JPY produced a bearish engulfing candle on Friday. Thursday’s candle closed above the swing high, but Friday’s candle came back in. Thus, the level of resistance is intact and may continue driving the price towards the South. Major intraday charts show that the price has been in a bullish correction. Upon finding intraday resistance, the price may head towards the South if it makes a breakout at Friday’s lowest low. Let us now have a look at three vital charts.
Chart 1 CAD/JPY Daily Chart
The chart shows that, after being bullish, the price made a bearish correction. It found its support around 79.945 headed towards the North. Thursday’s candle closed above the level of 80.900, but Friday’s bearish engulfing candle came back in. It means that the sellers may consider it a rejection at a double top resistance. The sellers on the daily chart may wait for the price to go below the level of 79.945 to go short in the pair and drive the price towards the South with good bearish momentum.
Chart 2 CAD/JPY H4 Chart
The chart shows that the price made a strong bearish move and made a bullish correction. The level of 80.800 may work as a level of resistance. If the level ends up producing a bearish reversal candle, the sellers may go short below the level of 80.265. The price may find its next support around 79.480. On the contrary, if the price makes a bullish breakout at the level of 80.800, the price may get choppy and find its resistance around the level of 81.050.
Chart 3 CAD/JPY H1 Chart
The chart shows that the price had a rejection at the level of 80.800 twice. At the second rejection, the price has been bearish. If it ends up being a bearish engulfing candle, the sellers may go short in the pair and drive the price towards the level of 80.280. It may find its support around at the level of 80.460. However, if the price makes a bullish breakout at the level of 80.800, it may head towards the North and find its resistance around 81.050. The H1 chart looks good for the buyers as well. However, considering other charts, it looks it may be more rewarding for the sellers.
The daily and the H4 chart are bearish biased. The H1 chart looks good for both. Considering these three charts, it seems that the Bear may dominate in the pair. If that happens and the candle closes below the daily chart’s neckline, the pair may remain bearish in the coming days.