The CADJPY resumed its recovery inside pitchfork channel where it succeeded in flirting with the main medium-term resistance located in the 101.00 regions.
The above-mentioned level meets 61.8% Fibonacci retracement of the wave from 106.40 to 91.75 and it offered good resistance today, pushing the CADJPY lower.
We wrote earlier that, all eyes are on 99.50, but our sell stop order wasn’t activated and now, all eyes become on 101.30-101.50 areas, which should be the defensive level for renewed short positions.
By examining the RSI 14, we can see the probabilities of tracing a negative divergence, while the secondary image of the eight-hour chart reflect the strength of the resistance zones with bearish engulfing candlestick pattern.
Area between 99.30 and 99.05 could be the target; whilst 101.30-101.50 could act as ceiling according to you risk management plan.