Forex Signals

CADJPY Structure Suggests Bearish Continuation


The CADJPY cross in its 2-hour chart moves in a mid-term sideways structure identified as a contracting triangle pattern. The technical formation suggests the bearish continuation of the bearish sequence started on June 05th, when the price topped at 81.905.

Both the bearish trendline as the RSI oscillator confirms that the bearish trend remains intact. In this context, the RSI reveals a breakdown that suggests the possibility of a bearish movement. At the same time, the re-test of the base-line of the contracting triangle leads us to expect a new decline in the CADJPY cross.


An intraday bearish movement could drag the price from the current zone until the consolidation zone developed on May 29th at 77.955. The invalidation level of our bearish scenario locates at 79.058.


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By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

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