CADJPY - DOWNTREND MAY PERSISTSymbol - CADJPY
CMP - 104.50
The CADJPY currency pair continues to exhibit a downward trend; however, within the current movement, a symmetrical triangle pattern of an accumulative nature is developing.
The pair may persist in its decline, driven by the strengthening of the Japanese Yen, while the Canadian Dollar remains consolidated within a narrow range. This trend may be further influenced by today's news, particularly President Trump's speech, in which he may announce new tariff measures.
From a technical perspective, the price is undergoing a correction following a false break of the 103.56 level, remaining below the previously breached upward support. The price is now testing key resistance at 104.90, where a false breakout is forming against the 0.5 Fibonacci retracement level. A consolidation below 104.69, coupled with a break of 104.525, could prompt a continuation of the decline.
Key resistance levels: 104.90, 105.36, 105.74
Key support levels: 104.525, 103.56
With important news on the horizon, significant volatility is expected, particularly during President Trump's speech, which could set the tone for medium-term market direction. The pair is currently in consolidation, amidst the ongoing downtrend, and the prevailing outlook is for further downward movement.
