The Canadian dollar versus the Japanese yen pair, or the CADJPY, is moving in a bearish direction on the daily basis. The pair has rallied in the past weeks to reach 81.10 levels today and currently offers an excellent selling opportunity.
As can be seen from the above chart, the pair is meanwhile forming a descending classic channel and the price has reached the upper limit of this channel, which is likely to provide a great selling opportunity from the current areas.
In addition, the price has failed to continue upwards above the Ichimoku Kinko Hyo cloud and now it represents a strong resistance level that could return it to at least 79.20 levels.
This analysis fails with at least a daily close above the cloud and breaching the upper boundary of the classic channel.
It is worth mentioning that last week’s bearish candlestick, which was
an excellent Shooting Star, raises the likelihood of seeing a fall in the pair
over the coming weeks.