The CAD/JPY pair has been in a pronounced downtrend since 22nd March last month. Price is now experiencing a minor retracement. Zone of high confluence indicates potential end of retracement and a continuation of the previously established bearish trend.
POC zone is 80.40-50 [D H3, W H3, 4/8, FE38.2]. Ideally, we are looking bearish candlestick configurations like a Shooting Star, Bearish Engulfing Bar, or even better, a Dark Cloud Cover, for a confirmation trigger. Targets are 79.95 [Previous Swing Low] and with a decisive break, we can expect price to reach 79.68 [D L3, W L3, 0/8], 79.50 [-1/8, FE -27.2], with a final target of 79.30 [D L4, W L4, -2/8]
Be mindful that price could reject from 80.86-96 [D H4, W H4, 6/8, FE 61.8] zone as well. Any candle close above this, sentiment would turn bullish, targeting 81.51 [D H5, W H5, +2/8]. If 81.51 breaks, we could be seeing bullish momentum up to 82.47 [FE 161.8]