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| CADJPY Price Analysis |
CADJPY has been moving in a strong uptrend over the past sessions but is now facing a major resistance around 109.25 – 109.28.
This zone has acted as a key supply area in previous price action, and the current structure on the chart indicates that buyers are losing strength.
A rounded top pattern has started to appear — a classic sign that the bullish momentum is fading and a potential bearish reversal could follow soon.
🔍 Technical Analysis
- Pattern Formed: Rounded Top / Distribution Phase
- Resistance Zone: 109.25 – 109.30
- Trendline Support: Around 108.80 – 108.60
- Momentum: Weakening as price tests resistance
- Market Sentiment: Short-term bearish while below 109.30
This setup indicates that the pair could face rejection at the resistance and correct lower toward the support trendline.
💡 Trading Signal (Short Setup)
| Action | Level | Description |
|---|---|---|
| Sell Entry | Below 109.20 | After confirmation of resistance rejection |
| Stop Loss | 109.35 | Above resistance zone |
| Take Profit 1 | 108.90 | First minor support |
| Take Profit 2 | 108.60 | Trendline target |
⚠️ Invalidation: If CADJPY breaks above 109.35 with strong bullish momentum, the bearish setup will be invalidated.
🧭 Outlook
The overall short-term bias remains bearish until the price breaks convincingly above 109.35.
Traders can watch for confirmation signals such as bearish engulfing candles or RSI divergence before entering the trade.
A successful rejection from this zone could provide a clean intraday sell opportunity with attractive risk-reward potential.
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