ThinkForex - Analytics


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    CADJPY hit by a triple-whammy of bearishness overnight

    The Canadian Dollar was hit with a triple-whammy overnight, as oil plunged over 7%, its manufacturing sector contracted below 50 for the month and the Japanese Yen saw inflows in a decisively risk-off environment

    Technically CADJPY appears ready for another leg down, having seen a swing high at 94.45. D1 (not pictured) closed the session with a Hanging Man Reversal and a particularly bearish engulfing candle, so now seeking bearish setups on lower timeframes.

    Above we can see H4 where I have outlined a Bearish Wedge formation, which is successful, should target the base of the pattern around 88.76 or even 87.32 (depending on where you decide the wedge starts). 

    There is a decent zone of resistance around 90.43-90.78 which may provide an area to consider fading into, assuming we see a retracement at all. 

    A break above 90.78 puts this back into 'no-man's land' for me so invalidates the setup, pending further analysis. 

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