The CAD/JPY pair is trading in the red at 107.33 at the time of writing. The price seems under pressure in the short term but a downside movement still needs confirmation. It moves somehow sideways, that's why we have to wait for a clear direction.
Fundamentally, the Japanese SPPI came in better than expected while Tokyo Core CPI came in worse than expected. Fed Chair Powell's speech brought some volatility earlier today. Later, ECB President Lagarde's remarks should move the CAD/JPY pair as well, that's why we have to be careful.
CAD/JPY Bears Could Take The Lead!
As you can see on the H1 chart, the rate increased within an up channel. Now, it has escaped from this pattern and it has tested and retested the upper median line (uml), which represents a dynamic resistance.
It's trapped between the 107.67 and 107.21 levels. Escaping from this pattern should bring us new opportunities.
CAD/JPY Outlook!
As long as it stays below the upper median line (uml), the rate could drop again. A bearish closure below 107.21 is seen as a bearish signal.
