CAD/JPY: a pattern has emerged
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Trade idea
SELL 82.20; TP1 81.40; TP2 80.50; SL 82.50
It looks like CAD/JPY formed a “Head and shoulders” pattern. The pattern may not look very pretty but it has all the required elements. The pair broke below the neckline in the 82.40 area on Friday. On Monday, the price attempted to get higher but the neckline provided resistance.
CAD/JPY is also trading below the 38.2% Fibonacci retracement of the January-March advance. As a result, the levels to target on the downside lie at 81.35 (50% Fibo) and 80.45 (61.8% Fibo).
