On this week’s analysis, we’ll be looking at the CADJPY pair on the daily timeframe. The market has been consolidating forming lower highs and resulting into a descending triangle. One may also see it as a double top, with the second top occurring lower than the first one. Price broke out 2 weeks ago and made a pullback, and did the same again last week.
Most recently, price broke out of the chart pattern convincingly and was followed by a doji. At this point our bias is bearish, but we will have to wait for further confirmation by price action to see whether bears will maintain lower prices.
On this pair we will be looking at it on the weekly timeframe. Price has been on a downtrend denoted by the trend line connecting the swing highs. A consolidation ensued in form of a double top that is quite clear. Last week’s candlestick has broken out of the neckline.
The breakout that formed gave us an early indication that we could expect price to fall. This being a weekly breakout, you may check on the daily timeframe, if there was a confirmation or a retest. It will give a more refined outlook on whether to anticipate a waterfall of price.