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.