From what is seen on the 4-hour chart, the CAD/JPY cross currency pair appears to be under seller pressure, which is confirmed by its price movement below the EMA 21 which has a slope that dives down and the formation of a Bearish 123 pattern followed by the appearance of a Bearish Ross Hook (RH) coupled with its price action forming a higher-Low and Lower Low so that based on these facts in the near future CAD/JPY has the potential to test the 109.13 level if this level is successfully broken and lost below it, then CAD/JPY has the potential to continue its weakening to the 108.80 level as its main target and 108.26 as the next target if volatility and momentum support it, but if on its way to the target levels there is a sudden strengthening correction to CAD/JPY, especially if it penetrates and closes above the 110.36 level, then the weakening scenario that has been described will be invalid and canceled by itself.
(Disclaimer)
