CAD/JPY Downtrend Line (October 9, 2013)
CAD/JPY’s downtrend is still very much intact, as the falling trend line connecting the price’s highs is still holding on the 1-hour time frame.
The pair just made a couple of tests of the trend line earlier this week and it appears that it could continue to hold for the rest of the week.
Stochastic is in the oversold zone, which means that Loonie traders will take the pair up for a pullback before letting the selloff resume. The trend line coincides with the 94.00 major psychological resistance level and a former support area.
Shorting at 94.00 with a 50-pip stop and 100-pip profit target could be a 2:1 trade for the day.
By Kate Curtis from Trader's Way