In the daily time scale of CAD/JPY, we can see another long-term reversal pattern.
At the 96.00 important psychological level, price has also dropped to the neckline of the formation, and a break lower may set off a decline with a height of almost 1,400 pip.
The bearish moving average crossing between the 100 SMA and 200 SMA indicates that sellers are currently in charge of the situation.
However, Stochastic is resting in the oversold range and is prepared to go back upward, suggesting that buyers may still be able to hold the support level.
If this occurs, the CAD/JPY pair may still rise to close resistance levels, maybe all the way to the moving averages' dynamic inflection points.
So keep an eye out for bearish candlesticks that signal a break below.
