The CAD/JPY pair rebounded in the short term but the rally seems over. After its massive drop, a bounce back was natural. The rate came back to attract more bearish pressure before reaching new lows.
Fundamentally, the NHPI rose by 0.0% versus the 0.1% growth estimated. Tomorrow, the Japanese SPPI is expected to register a 1.7% growth versus the 1.8% growth in the previous reporting period, while BOJ Core CPI could report a 2.6% growth.
CAD/JPY Downside Continuation Formation!
Technically, the currency pair developed an up channel formation. This is seen as a bearish formation. Now, it has registered only false breakouts through the weekly pivot point of 99.427 which stands as a static resistance.
The false breakouts announced that the rebound is over and that the sellers should take the lead again.
CAD/JPY Forecast!
The false breakout with great separation above the weekly pivot point of 99.427 represented a selling signal. The first target is seen at the uptrend line. Taking out the dynamic support opens the door for more declines and brings new bearish opportunities.
